The Following Items Would Be Classified as Operating Activities on the Statement

question 38

Multiple Choice

The following items would be classified as operating activities on the statement of cash flows:

• A) Payments for inventory, payments for salaries, cash received from sale of goods.
• B) Acquisitions of equipment, payment of dividends, revenue.
• C) Proceeds from borrowing, payments of dividends, purchases of supplies.
• D) Payments on loans, payments for taxes, payments for rent.

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Definitions:

Fraud

An intentional deception made for personal gain or to damage another individual.

25%

A rate or portion equal to one fourth or 25 out of 100 parts in a given context, often related to taxes, discounts, or interest rates.

Tax Liability

The total amount of tax owed by an individual or entity to the tax authorities.

Married Couple

Two individuals legally married to each other, who may file joint or separate tax returns in the eyes of the law.