Which of the Following Best Explains the Source of Increases

question 109

Multiple Choice

Which of the following best explains the source of increases in productivity?

• A)Increases in capital per hour of work
• B)Technological change
• C)Increases in the number of hours worked
• D)Both technological change and increases in capital per hour of work
• E)It is not known what causes productivity to increase.

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Definitions:

Operating Activities

The core activities that a business performs to earn revenue, including production, distribution, and sales processes.

Indirect Method

A technique used in cash flow statements to calculate net cash flows from operating activities by starting with net income and adjusting for non-cash transactions and changes in working capital.

Accumulated Depreciation

The total amount of depreciation expense that has been recorded for an asset over its useful life.

Statement of Cash Flows

A financial report that shows how changes in balance sheet accounts and income affect cash and cash equivalents, divided into operating, investing, and financing activities.