Match Each Definition with the Correct Term Below

question 155

Multiple Choice

Match each definition with the correct term below.
-Financing activities

• A)The method of preparing the operating section of the statement of cash flows that adjusts each item on the income statement from the accrual basis to the cash basis.
• B)The amount of cash that remains after deducting the funds a company must commit to continue operating at its planned level.
• C)Activities of a business that involve obtaining resources from stockholders and creditors,providing stockholders with a return on their investments,and repaying the amounts borrowed from creditors.
• D)Investments that can be quickly converted into cash.
• E)Activities of a business that involve the purchase and sale of property,plant,and equipment and other long-term assets.
• F)The ratio of net cash flow from operating activities to average total assets.
• G)Activities of a business that involve the cash inflows and outflows that enter into the determination of net income.
• H)The ratio of net cash flow from operating activities to net income.
• I)The method of preparing the operating section of the statement of cash flows that does not require the adjustment of each item on the income statement.
• J)The ratio of net cash flow from operating activities to net sales.

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Definitions:

Optimal Consumption

The mix of goods and services that maximizes consumer utility or satisfaction given their budget constraints.

Indifference Curve

A graph showing different combinations of two goods among which a consumer is indifferent.

Increase in Income

A situation where an individual or entity experiences a rise in their earnings or revenue over a period.

Video Games

Electronic games involving interaction with a user interface to generate visual feedback on a video device.