For Each of the Following, Identify Whether It Would Be

question 22

Short Answer

For each of the following, identify whether it would be disclosed as an operating (O), financing (F), or investing (I) activity on the statement of cash flows under the indirect method.
a. purchased buildings
b. sold patents
c. net income
d.issued common stock
e.paid cash dividends
f. depreciation expense

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Definitions:

Diseconomies of Scale

The phenomenon where production costs per unit increase as the scale of operation enlarges, often due to inefficiencies or increased complexity.

Constant Returns to Scale

A situation in economic production where increasing all inputs by any proportionate amount results in output increasing by the same proportion.

Long-Run Average Total Cost Curve

A graphical representation that shows the lowest possible cost at which a firm can produce any given level of output when all inputs are variable.

Technology

The application of scientific knowledge for practical purposes, especially in industry.