The FASB Requires a Reconciliation of Net Income to Net

question 161

Short Answer

The FASB requires a reconciliation of net income to net cash provided or used by operating activities when the ________ method is used.

---

Definitions:

Producer Surplus

A reiteration emphasizing the financial gain producers experience when the market price exceeds their minimum acceptable price for selling a good or service.

Consumer Surplus

The divergence in consumers' maximum willingness to pay and the actual payment for a good or service.

Autarky

An economic system or policy where a nation is self-sufficient and does not take part in international trade.

Exporting Industry

An industry primarily focused on producing goods and services for sale in foreign countries.