Which of the Following Would Be Classified as an Operating

question 67

Multiple Choice

Which of the following would be classified as an operating activity on the statement of cash flows using the direct method?

• A)Cash dividends paid to stockholders.
• B)Cash received from selling equipment.
• C)Cash paid to retire bonds payable at maturity.
• D)Cash received from accounts receivable collections.

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Definitions:

VARs

An abbreviation for Volt-Ampere Reactive, a unit of reactive power in an electrical system, representing the non-working power in an AC circuit.

Watts

The unit of power in the International System of Units (SI), equivalent to one joule per second.

Peak-to-peak

The difference in voltage between the highest and lowest points in a waveform.

Effective

Producing a decided, decisive, or desired effect; efficiency in producing a desired result.