Lower-Priced Money Is Used For

question 3

Multiple Choice

Lower-priced money is used for:

• A) recreation and entertainment.
• B) furniture.
• C) discretionary spending.
• D) tangible assets.

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Definitions:

Operating Activity

Activities that relate directly to the business’s primary operations, such as selling goods and providing services, not including investing or financing activities.

Direct Method

A way of preparing the cash flow statement where actual cash flows from operating activities are listed, opposed to adjusting net income for indirect factors.

Net Cash Flows

The total amount of cash and cash-equivalents being transferred into and out of a business.