What Is the Proper Order for the Categories of the Statement

question 47

Multiple Choice

What is the proper order for the categories of the statement of cash flows?

• A) Financing activities, investing activities, and operating activities
• B) Operating activities, investing activities, and financing activities
• C) Operating activities, financing activities, and investing activities
• D) Investing activities, financing activities, and operating activities

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Definitions:

Aggregate Demand

The total demand for all goods and services within an economy at various price levels, in a given time period.

Expansionary Gap

A situation where the actual economic output exceeds the potential output, often leading to inflation.

Short-Run Aggregate Supply

This is the total supply of goods and services that firms in an economy plan on selling during a short time period, taking into account current prices.

Government Spending

The total expenditure by the government on goods and services, including public services, infrastructure, and welfare programs, to influence the economy.