Answer:
The correct answer is b. In the indirect method statement, the period's depreciation is added to net income because it is a source of cash
Explanation:
Indirect method make adjustment to reconcile the net income to cash. It depends on the account if it is added or subtracted to net income.
We are going to analyze the options
a. The operating section of the indirect method starts with the net income of the period TRUE
b. In the indirect method statement, the period's depreciation is added to net income because it is a source of cash
FALSE, depreciation is not a source of cash
c. Interest payments are included in the operating section of the direct method statement
TRUE
d. The investing section of the direct method statement for a period is identical to the investing section of the indirect method statement for the same period TRUE
Because financial markets are <u>Imperfect</u>, securities buyers and sellers do not have full access to information and cannot always break down securities to the precise size they desire.
<u>Explanation:</u>
An imperfect market is a whole where individual buyers and sellers may influence prices and efficiency, where there is no full transparency of knowledge about products and costs, and where there are large barriers in the sector to enter or exit.
Imperfect markets may not follow the exact measurements of an actual or competitive possible market. If financial businesses were ideal, investors would be constantly and freely responsive to all erudition about any security for trade-in prime and corresponding businesses.
Some of the mistakes that we made are:
- Getting loans unthoughtully
- Buying things that we don't actually need before we managed to fulfill all basic needs for our living.
- Too late to invest. In order to financially secure, it's best to set asie an investment and let the profit compound.
Generally, the price of <u>other goods</u> is an important determinant of demand for a product.
<h3>What are the determinants of demand? </h3>
The determining factor for demand level of a product includes changes in income, prices of related goods, consumer expectations, consumer tastes etc.
Therefore, the price of <u>other goods</u> is an important determinant of demand for a product.
Read more about determinants of demand
<em>brainly.com/question/23195830</em>
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Answer:
D. Deflation
Explanation:
"Consumer Price Index" <em>(CPI)</em> measures the changes in the weighted average of prices of a market basket (consisting of consumer goods and services). It tells the<u> cost of living for every consumer. </u>
"Inflation" refers to the sustained increase of prices of goods and services while "deflation" refers to the sustained decrease of prices of goods and services.
In the situation above, the CPI is considered lower than before, thus <u>deflation</u> must have occurred during the second six-year period. It shows a <u>negative inflation rate.</u>
So, this explains the answer.