Which of the Following Operating Activities Results in a Cash

question 34

Multiple Choice

Which of the following operating activities results in a cash outflow?

• A)Paying creditors for merchandise
• B)Collecting accounts receivable
• C)Making cash sales
• D)Receiving deposits recorded as unearned revenue

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Definitions:

Magazine Advertisement

A form of advertising that appears within printed magazines, aimed at attracting the reader's attention towards a product, service, or cause.

Sales Declined

The occurrence of a decrease in the number of products or services sold over a specific period.

Perpetually Advertises

A marketing approach that involves continuous and ongoing promotion of a product or brand.

Adaptation

The process of adjusting or changing to become suitable for a new environment or conditions.