Which of the Following Items Is Classified as Part of 'Operating

question 26

Multiple Choice

Which of the following items is classified as part of 'operating activities' in the statement of cash flows?

• A) Bad debts expense.
• B) Depreciation of non-current assets.
• C) Proceeds from the sale of non-current assets.
• D) Payments to suppliers for the purchase of goods.

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Definitions:

Aggregate Demand

represents the total demand for all final goods and services in an economy at a given time and price level.

Supply Curves

A graphical representation showing the relationship between the price of a good or service and the quantity of it that suppliers are willing to offer at that price.

Real GDP

The measure of a country's economic output adjusted for price changes (inflation or deflation), reflecting the true value of goods and services produced.

Supply Curves

A graphical representation that shows the relationship between the price of a good or service and the quantity that suppliers are willing to offer for sale at that price, over a given period.