In Addition to

question 92

Multiple Choice

In addition to

• A)performing financial intermediation,banks are important in that they help create a medium of exchange.
• B)serving as financial markets,mutual funds are important in that they help create a store of value.
• C)serving as stores of value,stocks and bonds also serve as media of exchange.
• D)All of the above are correct.

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Definitions:

Indirect Approach

A method used in the preparation of the cash flow statement where net income is adjusted for non-cash transactions and changes in working capital.

Investing Activities

Financial transactions related to the acquisition and disposal of long-term assets and other investments not included in cash equivalents.

Financing Activities

Transactions and events where cash is raised from or repaid to investors, such as issuing shares or borrowing.

Direct Approach

A method in financial statement reporting that presents major classes of operating cash receipts and payments.