The Extent to Which a Firm Adjusts Net Income for Changes

question 44

Multiple Choice

The extent to which a firm adjusts net income for changes in noncurrent assets and noncurrent liabilities in deriving cash flow from operations depends on the nature of its operations._____ will usually show additions or subtractions for losses and gains on the disposal of assets.

• A)Firms that have decreased earnings
• B)Firms that increase in size
• C)Firms that decrease in size
• D)Firms that have increased earnings
• E)Service firms

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Definitions:

Proletariat

The class of wage-earners, especially in a capitalist society, who do not own the means of production and whose only sustainable means of livelihood is to sell their labor.

Marx

Refers to Karl Marx, a 19th-century philosopher, economist, and revolutionary socialist whose works have significantly influenced socialist and communist movements worldwide.

Social Stratification

The hierarchical arrangement and classification of individuals or groups in society based on wealth, income, social status, occupation, or other criteria.