Operating Income Is Typically Equal to Cash Flow from Operating

question 72

True/False

Operating income is typically equal to cash flow from operating activities.

---

Definitions:

Production Possibilities Curve

A curve that outlines all possible combinations of total output that could be produced, assuming (1) a fixed amount of productive resources, (2) a given amount of technical knowledge, and (3) full and efficient use of those resources. The slope of the curve indicates the amount of one product that must be given up to produce more of the other.

Economic Organization

The structured systems and institutions through which economic activity is conducted and regulated, including markets, firms, and government agencies.

Capital Stock

The total value of all physical assets owned by a company or country, used in the production of goods and services.

Comparative Advantage

The economic principle that a country or entity benefits by producing goods or services for which it has a lower opportunity cost than its trading partners.