Answer:
Which of the following situations would be considered cyclical unemployment?
B-D
Explanation:
D. A worker on the assembly line at Ford is laid off due to a drop in car sales brought on by a weak economy.
B. A recent college graduate cannot find a job anywhere, despite excellent qualifications. The news media report that there are not enough jobs to go around in the economy.
<h2>
Both situations are examples of an economic problem.</h2>
Explanation:
Let us understand the term "economic problem"
Though the expectation of the people are endless, the "resources available" to satisfy the need is limited. This causes the "economic problem".
A student trying to decide how to spend his weekly allowance:
The need of student may be endless but still he is in a position to decide only based on the amount which he has to spend. He needs to prioritize the needs and then spend accordingly.
A country choosing to sacrifice some privacy to gain more security:
Under a compelled situation, the country has to sacrifice the privacy and then have to gain security. The loss due to negotiation of privacy is for sure and this leads to economic problem.
That would be considered fraud. He would be lying to the IRS about his gambling thing going on in the back. He would most likely get some fines and charged for the money he earned from that side business.
Answer:
a. Net income - Operating
b. Paid cash dividends - Financing
c. Issued common stock - Financing
d. Issued bonds - Financing
e. Redeemed bonds - Financing
f. Sold long-term investments - Investing
g. Purchased treasury stock - Financing
h. Sold equipment - Investing
i. Issued preferred stock - Financing
j. Purchased buildings - Investing
k. Purchased patents - Investing
Explanation
The statement of cash flows is basically made up of three sections: operating, financing and investing activity.
Statement of cash flows, using indirect method is simply a statement that records the cash inflows and outflows after adjusting for non-cash items.
- Operating activities comprise the adjustment of non-cash items that were already added or subtracted from the net income in preparing the income statement in line with accrual accounting. Then, it records the movement in current assets and liabilities.
- The Financing section comprises those activities that are geared towards improving the capital structure of the company like issuance of stocks, cash dividend payment, etc.
- Finally, the Investing activities are those activities involving purchase of equipment or any other assets that would be used in the course of the business to generate revenue.
