Increases and Decreases in the Long-Term Liability Accounts Are Reported

question 3

Multiple Choice

Increases and decreases in the long-term liability accounts are reported on the statement of cash flows as:

• A)operating activities.
• B)investing activities.
• C)financing activities.
• D)noncash activities.

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Definitions:

Consumption

The use of goods and services by households, which is a primary component of GDP and a key indicator of the economic health of a society.

Gross Domestic Product

The total value of all goods and services produced within a country's borders during a specific time period, used as a broad indicator of economic health.

Indirect Business Taxes

Taxes levied on goods and services rather than on income or profits, such as sales tax, often passed on to the consumer.

Rent

The payment made by a tenant to a landlord for the use of a property, room, or apartment for a specified period.