Which of the Following Fall During a Recession

question 19

Multiple Choice

Which of the following fall during a recession?

• A)both retail sales and employment
• B)retail sales but not employment
• C)employment but not retail sales
• D)neither employment nor retail sales

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Definitions:

Indirect Method

A technique used in cash flow statements to convert net income into net cash flow from operating activities, by adjusting for non-cash transactions.

Direct Method

A cash flow statement approach that involves listing all major operating cash receipts and payments to calculate net cash from operating activities.

Cash Flows

The total amount of money being transferred into and out of a business, especially affecting liquidity.

Quality Of Income Ratio

The quality of income ratio measures the proportion of income that has been realized in cash or is easily convertible into cash, indicating the company's earnings sustainability.