CONSUMPTION SMOOTHING Definition

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CONSUMPTION SMOOTHING is aimed at protecting consumption patterns from the impact of shocks, and can take effect either before or after their occurrence. Post-shock responses include modifying consumption, raising income by mobilizing labor or selling assets, drawing on informal or formal sources of savings, or activating claims on informal insurance mechanisms.

Learn new Accounting Terms

PURCHASE RETURNS is a contra purchase account that records all credits from returned inventory purchases.

CASH FLOW STATEMENT see STATEMENT OF CASH FLOWS.

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