A Period of Time in Which the Overall Pace of Business

question 215

Multiple Choice

A period of time in which the overall pace of business activity is rising is known as

• A) inflation.
• B) deflation.
• C) an expansion.
• D) a contraction.

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Definitions:

Income Statement Accounts

Accounts that reflect the income, expenses, gains, and losses of a business over a period of time.

IFRS

International Financial Reporting Standards, a set of global accounting guidelines that provide a common language for business affairs so that company accounts are understandable and comparable across international boundaries.

Direct Method

In cash flow reporting, a method that lists the major categories of gross cash receipts and gross cash payments.

Indirect Method

A technique used in cash flow statement preparation that adjusts net income for the changes in balance sheet accounts to arrive at the cash flow from operating activities.