Which of the Following Is True Regarding the Statement of Cash

question 14

Multiple Choice

Which of the following is true regarding the statement of cash flows?

• A)Financing activities for corporations include lending money and buying shares.
• B)Investing activities involve collecting the necessary funds to operate the business.
• C)The purchase of equipment is an example of a financing activity.
• D)Revenues are increases in economic resources that result from a business's operating activities.

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Definitions:

Output

The total quantity of goods or services produced by a company, industry, or economic system.

Price

The amount of money required to purchase a good, service, or asset, determined by factors like supply and demand, production costs, and market competition.

Economies Of Scale

The cost advantage that arises with increased output of a product, where the cost per unit decreases as production expands.

Financial Resources

Funds available to a business or individual for spending in the form of cash, liquid securities, and credit lines.