The Expenditure Approach Is Calculated as

question 53

Multiple Choice

The expenditure approach is calculated as

• A) C + I + G.
• B) C + I + X.
• C) C + I + G + NX.
• D) C + I + NX.
• E) the value approach.

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Definitions:

Financing Activities

Transactions that result in changes in the size and composition of the equity capital or borrowings of a company.

Direct Method

A cash flow statement preparation method that itemizes actual cash receipts and payments.

Operating Expenses

Costs associated with the day-to-day functions of a business, excluding costs of production or manufacturing.

Prepaid Expenses

Payments made in advance for goods or services, which are recorded as assets until they are actually used.