According to the Statement of Cash Flows,a Decrease in Accounts

question 15

Multiple Choice

According to the Statement of Cash Flows,a decrease in accounts receivable will _____ the cash flow from _____ activities.

• A)decrease; operating
• B)decrease; financing
• C)increase; operating
• D)increase; financing
• E)increase; investment

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Definitions:

Theory of the Leisure Class

A socio-economic theory presented by Thorstein Veblen, which critiques consumerism and status-driven consumption, emphasizing the social uses of wealth and leisure to display status rather than for utility.

Theory of the Multiplier

An economic theory suggesting that an initial increase in spending leads to increased income and consumption, further magnifying economic activity.

Disposable Income

Disposable income for households to spend or save after accounting for income taxes.

Autonomous Consumption

The level of consumption spending that occurs when income is zero, representing the expenditures necessary for basic needs.