Operating Activities Are Concerned With

question 8

Multiple Choice

Operating activities are concerned with:

• A) the trading and/or service operations of the business.
• B) borrowing or lending.
• C) the sale or disposal of non-current assets.
• D) none of the above.

---

Definitions:

Sales-Type Lease

A leasing arrangement where the lessor recognizes sales revenue at the lease inception, reflecting the sale of an asset.

Operating Lease

A lease agreement allowing for the use of an asset without ownership, typically with shorter terms and cancelable by the lessee under specific conditions.

Property, Plant, and Equipment

Long-term tangible assets that are used in the operations of a business and are not expected to be consumed or converted into cash within a year.

Reported Amount

The value of an item as presented in financial statements, considering the accounting principles and policies applied by the entity.