Knowee
Questions
Features
Study Tools

Classify the following economic flows as transactions, revaluations (holding gains/losses), and other changes in the volume of assets and liabilities by placing them in the appropriate box. 1. The consumption of fixed capital(macroeconomic depreciation)

Question

Classify the following economic flows as transactions, revaluations (holding gains/losses), and other changes in the volume of assets and liabilities by placing them in the appropriate box. 1. The consumption of fixed capital(macroeconomic depreciation)

🧐 Not the exact question you are looking for?Go ask a question

Solution

The consumption of fixed capital (macroeconomic depreciation) is classified as "Other changes in the volume of assets and liabilities". This is because it represents the reduction in the value of an asset due to wear and tear over time, which is not a transaction (as it does not involve an exchange between economic units) or a revaluation (as it does not result from changes in prices or exchange rates).

This problem has been solved

Similar Questions

Which of the following are flows?Group of answer choicesConsumption, workers hired, capitalInvestment, budget deficit, incomeInvestment, debt, incomeConsumption, unemployment, household deficit

In the statement of cash flows, net cash flows from operating activities plus net cash flows from investing activities plus net cash flows from financing activities for the period equal:Group of answer choicesthe cash balance at the beginning of the period.total net increase or decrease in cash held for the period.the cash balance at the end of the period.operating profit.

The statement of cash flows separates cash inflows and outflows into the following classifications.Multiple choice question.Operations, Investments and FinancialGross Profit, Operating Income and Net IncomeCash Collected, Cash Disbursed and Change in CashOperating, Investing and Financing

Consider the distinction between “stock” and “flow” variables. Which of the following variables are ALL “flow” variables?Group of answer choicesInvestment, savings, wealthGDP, investment, wealthInvestment, savings, capitalGDP, investment, consumption

4.7.Indicate whether each of the following items would result in net cash flowfrom operating activities being higher (H) or lower (L) than net income.1.Decrease in accounts payable.2.Depreciation expense.3.Decrease in inventory.4.Gain on sale of assets.5.Increase in accounts receivable.6.Increase in deferred tax liabilities.7.Decrease in accrued liabilities.8.Increase in prepaid expenses.9.Increase in deferred revenue.10.Decrease in interest receivable.

1/3

Upgrade your grade with Knowee

Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.