Which of the Following Events Would Be Classified as an Operating

question 86

Multiple Choice

Which of the following events would be classified as an operating activity in a statement of cash flows?

• A) receipt of a cash dividend from an equity investment
• B) sale of a long-term investment
• C) issuing notes payable
• D) payment of cash dividends

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Definitions:

Act for the Prevention of Frauds and Perjuries

Historical legislation which aimed at reducing fraud and perjury in legal agreements, emphasizing the importance of written contracts.

Promissory Estoppel

The legal enforcement of an otherwise unenforceable contract due to a party’s detrimental reliance on the contract.

Negligent Misrepresentation

A false statement of material fact made by a party who thinks it is true but who would have known the truth about the fact had he or she used reasonable care to discover or reveal it.

Statute of Frauds

A legal doctrine requiring certain contracts to be in writing and signed by the parties involved to be enforceable.