Operating Activities on a Statement of Cash Flows Are Generally

question 28

Multiple Choice

Operating activities on a statement of cash flows are generally associated with:

• A) changes in equity of an entity.
• B) revenues and expenses of an entity.
• C) acquisitions of non-current assets of an entity.
• D) movements in non-current liabilities of an entity.

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Definitions:

Invested Capital

Funds invested in a company by the shareholders and lenders, used for the purchase of assets and operation of the company, aiming for business growth and profitability.

Expansion Alternatives

Various strategies or methods a company may consider to grow its business operations, such as opening new locations, product diversification, or acquisitions.

Investment Center

A business unit within an organization that is responsible for its own revenue, expenses, and investments, and is evaluated based on its return on investments.

Revenues

The total income generated from normal business operations, before any expenses are deducted.