The Term "Cash Build" Is Measured As

question 65

Multiple Choice

The term "cash build" is measured as:

• A)net income plus depreciation
• B)net sales minus expenses minus (plus)an increase (decrease)in inventories
• C)net sales minus (plus)an increase (decrease)in receivables
• D)net income plus depreciation minus (plus)an increase (decrease)in payables

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Definitions:

Elasticity Negative

A term used to describe the relationship when the demand for a good or service decreases as its price increases, indicating consumers' sensitivity to price changes.

Income Elasticity

A measure of how the quantity demanded of a good or service changes in response to changes in consumer income.

Normal Good

A good whose demand increases when consumer income rises.

Cross-price Elasticity

An indicator showing the responsiveness of the demand for a particular item to variations in the price of a different item.