Cash paid for interest is considered a(n) operating cash flows activity on the statement of cash flows.
<h3>What Is Operating Cash Flow (OCF)?</h3>
The amount of cash generated by a company's normal business operations is measured as operating cash flow (OCF). Operating cash flow indicates whether a company can generate enough positive cash flow to sustain and grow its operations; otherwise, external financing for capital expansion may be required. The cash impact of a company's net income (NI) from its primary business activities is represented by operating cash flow. The first section of the cash flow statement is operating cash flow, also known as cash flow from operating activities.
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Answer:
See explanation section.
Explanation:
In the book of Radomir Company
merchandise inventory Debit = $1,350
account payable - Lemke Company Credit = $1,350
<em>To record the purchase from Lemke Company on account.</em>
In the book of Lemke Company,
Accounts receivable Radomir Company Debit $1,350
Sales revenue Credit $1,350
<em>To record the sales on account.</em>
Cost of goods sold Debit = $940
Merchandise inventory Credit = $940
As the company uses perpetual inventory system therefore, the company will gave cost of goods sold journal.
Answer:
because In the long run, real GDP tends to potential output.
Explanation:
Since actual GDP continues to increase economic output in the longer term, the seasonally adjusted annual budget balance is a better predictor of public policies ' long-term sustainability. ... Economic GDP dropped in recessions.
This means that incomes for consumers, business investment and profits for producers also fall.
The cyclically adjusted expenditure balance plays an important role in the EU budgetary framework, which still provides a better picture of fiscal policy focus.
Answer:
1. True
2. True
Explanation:
An expansionary gap, also known as the inflationary gap in economics is used to measure the difference between the gross domestic product (GDP) and the current level of real Gross Domestic Products that exists when a country's economy is guaged at a full employment rate. This eventually causes the price of goods and services to go up with a low income level. Also, an expansionary fiscal policy will cause the total increase in aggregate demand to be greater than the initial increase in aggregate demand due to the multiplier process.
Additionally, this simply means in an inflationary or expansionary condition, the potential Gross Domestic Products (GDP) is lower than the real Gross Domestic Products.
The investment accelerator effect states that there is an increase in investment expenditure when there is increase in the level of income or demand. Thus, the level of investment in a particular economy is based on the rate of change in consumption and the gross domestic product (GDP).
Hence, when the investment accelerator is large, there's likely to be a short-run increase in investment due to expansionary fiscal policy. The expansionary fiscal policy is usually less when the the interest rate sensitivity of investment is large and consequently, leading to a greater decline in investments.
That sounds about right for accounting anyway