Operating, Investing, and Financing Activities Affect Certain Balance Sheet Accounts

question 54

Multiple Choice

Operating, investing, and financing activities affect certain balance sheet accounts.Which of the following statements is true?

• A) Operating activities primarily involve transactions which affect noncurrent assets.
• B) Investing activities primarily involve U.S.government securities and long-term productive assets.
• C) Financing activities primarily involve transactions which affect current liabilities.
• D) Different balance sheet accounts are affected depending on whether the direct or indirect method is used.

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Definitions:

Hot Seat

A situation or exercise in which an individual is singled out for intensive questioning or scrutiny.

Orientation

The introduction and acclimatization process to new information, environments, roles, or systems.

Group Cohesion

The extent to which members of a group stick together and remain united in pursuit of common goals and objectives.

Behaviors

The actions or reactions of an individual or group in response to external or internal stimuli.