Which of the Following Would Be Classified as an Operating

question 67

Multiple Choice

Which of the following would be classified as an operating activity on the statement of cash flows using the direct method?

• A)Cash dividends paid to stockholders.
• B)Cash received from selling equipment.
• C)Cash paid to retire bonds payable at maturity.
• D)Cash received from accounts receivable collections.

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Definitions:

Supermajority Vote

A requirement that a motion must receive significantly more than a simple majority of votes, often two-thirds or three-quarters, to be approved.

Employee-Shareholder

An employee-shareholder is an employee who also holds shares in the company they work for, often benefiting from stock options or equity compensation plans.

Dividends

Payments made by a corporation to its shareholders, usually as a distribution of profits.

Corporate Opportunity

A business opportunity that a company has a legal interest in or right to, which an officer or director cannot take for their personal gain without breaching their fiduciary duty.