Under USGAAP, the Statement of Cash Flows Classifies Changes in Accounts

question 120

Multiple Choice

Under U.S.GAAP, the statement of cash flows classifies changes in accounts payable as a(n) _____ activity and classifies changes in short-term bank borrowing as a(n) _____ activity.

• A)operating: financing
• B)financing; operating
• C)investing; operating
• D)operating; operating
• E)financing; financing

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Definitions:

Land-Abundant

A description of a country or region that has a large amount of land available for agriculture or development relative to other inputs.

Urbanized

Characterized by or pertaining to regions that are densely populated with humans and typically have a lot of developed infrastructure.

Heckscher-Ohlin Model

An economic theory that explains international trade in terms of differences in the relative endowments of factors of production among nations, suggesting that countries will export goods that make intensive use of locally abundant factors.

Comparative Advantage

The ability of an individual, company, or country to produce a good or service at a lower opportunity cost than competitors.