Which One of the Following Categories on a Statement of Cash

question 80

Multiple Choice

Which one of the following categories on a statement of cash flows is used to report the cash flow effects of buying and selling property, plant, and equipment?

• A) Operating Activities
• B) Investing Activities
• C) Financing Activities
• D) Profit Activities

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Definitions:

Book Value

The net value of a company's assets as recorded on the balance sheet, minus its liabilities and the par value of any outstanding shares.

Opportunity Cost

Opportunity cost is the value of the next best alternative foregone as the result of making a decision.

Variable Costs

Payments that are contingent on the amount of production or the scope of sales, covering expenditures like materials and labor.

Variable Costs

Costs that vary directly with the level of production output, such as raw materials and direct labor expenses.