Operating Activities Are Transactions and Events Associated with Selling a Product

question 47

Multiple Choice

Operating activities are transactions and events associated with selling a product or providing a service related to

• A) the revenues and expenses reported on the income statements.
• B) the assets and liabilities reported on the balance sheet.
• C) the net income reported on the statement of retained earnings.
• D) the retained earnings reported on the balance sheet.

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Definitions:

Financial Position

A snapshot of the assets, liabilities, and equity of a business at a given point in time, illustrating the company's financial health.

Changes in Equity

Adjustments in a company’s equity during a specific period due to factors like earnings, dividends, or changes in share capital.

Total Assets

Total Assets refer to the sum of all current and non-current assets owned by a company, representing its resources with economic value.

Canada Revenue Agency

The federal agency responsible for the administration of tax laws for the Government of Canada, as well as for various social and economic benefit and incentive programs.