Which of the Following Helps in Adjusting GNI Such That

question 45

Multiple Choice

Which of the following helps in adjusting GNI such that it accounts for the differences in the cost of living?

• A) Purchasing power parity (PPP) adjustment
• B) Human Development Index
• C) Debt to GNI ratio
• D) Consumer Price Index

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Definitions:

Operating Activities

Business activities directly related to the production and delivery of goods and services, impacting the operating income.

Direct Method

The direct method is a way of preparing the cash flow statement that involves listing all the major operating cash receipts and payments during the period, showing the net cash provided by operating activities.

Operating Expenses

Recurring expenses incurred through normal business operations, such as rent, utilities, and payroll, excluding COGS.

Cash Payments

Transactions that involve the direct transfer of money to settle obligations, including expenses, debts, or purchases, without the use of credit.