You Would Expect to Find the Term "Operating Cash Flows

question 10

Multiple Choice

You would expect to find the term "operating cash flows" in which of the following places in the financial statements?

• A) In the balance sheet
• B) In the income statement
• C) In the statement of changes in shareholders' equity
• D) In a cash flow statement prepared using the indirect method

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Definitions:

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within one year or during the normal operation cycle of the business, whichever is longer.

Net Income

Net income is the total profit of a company after all expenses and taxes have been subtracted from total revenue.

Investments

Resources such as money put into buying financial instruments or other assets to gain profitable returns in the form of income, interest, or appreciation of value.

Accounts Payable

An accounting entry that represents a company's obligation to pay off a short-term debt to its creditors or suppliers.