In a Statement of Cash Flows, Receipts from Sales of Property

question 46

Multiple Choice

In a statement of cash flows, receipts from sales of property, plant, and equipment and other productive assets should be classified as cash inflows from

• A) operating activities.
• B) financing activities.
• C) investing activities.
• D) selling activities.

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Definitions:

Total Utility

The cumulative satisfaction or value a consumer receives from consuming a particular quantity of goods or services.

Money Income

The total income a person or entity receives in monetary form, including wages, salaries, benefits, and income from investments.

Marginal Rate

A term used to describe the rate at which one variable changes as another variable changes by a single unit, often applied in economic analysis like the marginal tax rate or marginal rate of substitution.

Substitution

The act of replacing one good or service with another due to changes in price or preference.