Which of the Following Would Not Be Included Within the Operating

question 39

Multiple Choice

Which of the following would not be included within the operating activities section of a cash flow statement?

• A)Cash received from customers.
• B)Cash paid for insurance.
• C)Cash paid for interest expense.
• D)Cash paid to acquire a patent.

---

Definitions:

Market Rate

The current interest rate or cost of borrowing in the market, applicable to loans, deposits, and securities.

Bond Interest Expense

The cost incurred by an issuer of bonds due to interest payments made to bondholders, typically recognized as an expense in the income statement.

Effective Yield

A measure of the actual rate of return earned on a bond or fixed-income investment, taking into account the effect of compounding interest.

Present Value Factors

Mathematical factors used to calculate the present value of a future amount of money or stream of cash flows given a specified rate of return.