Which of the Following Represents the Correct Order on the Statement

question 77

Multiple Choice

Which of the following represents the correct order on the statement of cash flows?

• A) Operating, financing then investing activities
• B) Investing, financing then operating activities
• C) Investing, operating and then financing activities
• D) Operating, investing then financing activities

---

Definitions:

Law of Diminishing

A principle stating that as more units of a variable input are added to fixed inputs, the additional output from each new unit of input eventually decreases.

Implicit Costs

The opportunity costs associated with a company's own resources, not directly paid for with cash but are the result of using assets instead of investing them elsewhere.

Economic Profit

The difference between total revenue and the total costs, including both explicit and implicit costs, unlike accounting profit which only considers explicit costs.

Explicit Costs

Direct financial payments made to acquire resources or services for business operations.