Which of the Following Is an Operating Activity

question 56

Multiple Choice

Which of the following is an operating activity?

• A)Receipt of customer deposit.
• B)Proceeds from mortgage issue.
• C)Purchase of land.
• D)Redemption of preferred shares.

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Definitions:

Factory Equipment

The machinery and tools used in the process of manufacturing goods, often considered as fixed assets in accounting.

Depreciation

The systematic allocation of the depreciable amount of a fixed asset over its useful life, representing the asset's wear and tear, deterioration, or obsolescence.

Product Cost

Refers to the total expenses incurred to manufacture a product, including direct labor, direct materials, and manufacturing overhead.

Checkout Clerk

An employee who is responsible for handling the final processing of transactions at the checkout counter of a retail store, including customer payment and bagging of items.