Cash Activity from the Buying and Selling of Productive Resources,such

question 187

Multiple Choice

Cash activity from the buying and selling of productive resources,such as land,buildings and equipment,are reported as cash flows from ________ activities on the statement of cash flows.

• A)investing
• B)operating
• C)financing
• D)managing

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Definitions:

Income Summary

An account used in the closing process during accounting that accumulates revenues and expenses to determine net income or loss.

Net Loss

The amount by which total expenses exceed total revenues for a business during a specific period, indicating a reduction in equity.

Salary Allowances

Compensation or benefits on top of regular salary, often for specific purposes like housing, travel, or meals.

Net Income

The amount of money a company earns after deducting all its expenses, taxes, and costs from its total revenue.