"Cash Flows from Operating Activities" Include Which of the Following

question 67

Multiple Choice

"Cash flows from operating activities" include which of the following as inflows

• A) Proceeds from short-term borrowing to finance operations.
• B) Receipts from property taxes levied to support operations of the activity.
• C) Grants from other governments to finance an operating deficit.
• D) Any cash receipt that does not meet the definition of investing, capital and related financing, or noncapital financing activities.

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Definitions:

Owner's Equity

The residual interest in the assets of an entity after deducting liabilities, representing the ownership interest of shareholders or owners.

Balance Sheet

A balance sheet is a financial statement that reports a company’s assets, liabilities, and shareholders' equity at a specific point in time, offering a basis for computing rates of return and evaluating its capital structure.

Assets

Resources owned or controlled by a business or an individual that are expected to produce future economic value.

Liabilities

Financial obligations or debts that a company owes to others, which must be settled over time through the transfer of economic benefits.