Operating, Investing, and Financing Activities Affect Certain Balance Sheet Accounts

question 54

Multiple Choice

Operating, investing, and financing activities affect certain balance sheet accounts.Which of the following statements is true?

• A) Operating activities primarily involve transactions which affect noncurrent assets.
• B) Investing activities primarily involve U.S.government securities and long-term productive assets.
• C) Financing activities primarily involve transactions which affect current liabilities.
• D) Different balance sheet accounts are affected depending on whether the direct or indirect method is used.

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