Which of the Following Is Not Included in the Operating

question 123

Multiple Choice

Which of the following is not included in the operating activities section of the cash flow statement under U.S. GAAP?

• A) payments of income taxes
• B) payments of dividends
• C) payments of interest
• D) payments of executive salaries

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Definitions:

Total Spending

The aggregate amount of expenditure by all sectors of the economy, including households, businesses, government, and foreign buyers.

Larger Output

Production at a higher volume, often pursued to achieve economies of scale and reduce the average cost per unit.

Government Purchases

Expenditures by the government sector for goods and services that government consumes in providing public services and for public capital that has long-term usage.

Consumption

The total amount of goods and services consumed by households over a specific time period.