Cash Receipts from Interest and Dividends Are Classified As

question 12

Multiple Choice

Cash receipts from interest and dividends are classified as:

• A) investing activities.
• B) operating activities.
• C) either financing or investing activities.
• D) financing activities.

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Definitions:

LIFO

Last-In, First-Out, an inventory valuation method where the most recently produced or purchased items are sold first, used for cost of goods sold calculation.

Pretax Income

The amount of income earned by a business before taxes have been deducted.

Ending Inventory

The total value of goods available for sale at the end of an accounting period, calculated as beginning inventory plus purchases minus cost of goods sold.

Inventory Error

Mistakes in counting or valuing inventory that can result in incorrect financial statements.