In which of the following cases is the assumption most reasonable? a. To address the benefits of trade, an economist assumes that there are two people and two goods. b. To estimate the speed at which a beach ball falls, a physicist assumes that it falls in a vacuum. c. To address the impact of taxes on income distribution, an economist assumes that everyone earns the same income. d. To address the impact of money growth on inflation, an economist assumes that money is strictly coins.

both are integral parts of a corporate balance sheet. the cash flow statement, or statement of cash flows, measures the sources of a company's cash and its uses of cash over a specific time period. the income statement measures a company's financial performance, such as revenues, expenses, profits or losses over a specific time period (in fact, it's sometimes called a statement of financial performance).

a cash flow statement shows exactly how much money a company has received and how much it has spent, traditionally over a period of one month. it captures the current operating results and changes on the balance sheet, such as increases or decreases in accounts receivable or accounts payable, and does not include noncash accounting items such as depreciation and amortization. the cash flow generally comes from revenue received as a result of business activity, but it may be augmented by funds available as a result of credit. a cash flow statement is used to determine the short-term viability and liquidity of a company, specifically how well it is positioned to pay its bills and vendors.

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