Which of the Following Describes the Operating Activities Section of a Cash

question 96

Multiple Choice

Which of the following describes the operating activities section of a cash flow statement?

• A)It provides information about how operations have been financed.
• B)It provides information pertaining to dividend payments to stockholders.
• C)It provides information with respect to a company's ability to generate cash flows to pay for goods and services.
• D)It provides the net increase or decrease in cash during the perioD.Cash flows from operating activities are cash flows directly related to earning income.

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Definitions:

Accounts Receivable

Money owed to a company by its customers for goods or services delivered but not yet paid for.

Zero-Based Budgeting

A budgeting method where all expenses must be justified for each new period, starting from a "zero base," rather than just adjusting previous budgets.

Cash Budget

An estimate of cash inflows and outflows over a specific period, used to manage and plan for cash needs.

Minimum Cash Balance

The lowest amount of cash that a company aims to maintain in its accounts to adequately meet its operational and financial obligations.