Answer:
d. Gain on sale of land
Explanation:
When using the indirect method in calculating net cash flow from operating activities, the net income is adjusted by the following items :
- Non-Cash flow items included in net income
- Changes in Working Capital items in net income.
From the choices given only gain from sale on land which is an income, has to be removed from net income to reach a cash flow figure.
Answer:
D. No legal barriers prevent a firm from entering an industry
Explanation:
Free entry means no legal barriers prevent a firm from entering an industry. Free entry offers very attractive business opportunity to the firms which want to start their business. Entrepreneurs are also facilitated with the help of free entry, they can easily start their new startups because there will be no legal barriers which can create hurdles or stops them in doing so. It is one of the basic requirements and first step if any government wants to increase SMEs and trading opportunities in their country. People feel relaxed and easy when they see free entry in their country.
Answer: False
Explanation:
Inflation refers to the general rise in prices of goods and services in an economy. It erodes the value of currency because with inflation, one is able to buy less goods.
If the inflation rate increases by 2% each year then the inflation rate is not increasing. The inflation rate is remaining constant at 2%. The inflation rate would be increasing if the prices increased by 2% then by 4% then by 6%. That way the inflation rate would be increasing by 2% every year.
If the rate at which prices are increasing is constant then, the inflation rate is the same.
Answer:
A is the answer of the percentage