Which of the Following Is a Way That the Operating

question 13

Multiple Choice

Which of the following is a way that the Operating Activity section of the statement of cash flows adjusts Net Income from the balance sheet?

• A)It subtracts all expenses and costs related to the firm's operating activities.
• B)It adds all non-cash entries related to the firm's operating activities.
• C)It adds the cash that flows from investors to the firm.
• D)It removes the cash used for investment purposes.

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Definitions:

Progressive

A term describing a tax system where the tax rate increases as the taxable amount increases, or broadly referring to policies or principles aiming at promoting social advancement.

Regressive

A term often used in taxation that describes a situation where the tax rate decreases as the taxable amount increases, placing a heavier burden on lower-income individuals.

Transfer Payments

Transfer payments are the distributions of money by the government to individuals without the requirement of goods or services in return, such as welfare or social security.

Income Redistribution

A policy or mechanism aimed at transferring income from certain individuals or groups to others, often to reduce economic inequalities.