Which of the Following Is a Cash Flow from Operating

question 5

Multiple Choice

Which of the following is a cash flow from operating activities? 

• A) Sale of long-term investments in common stock.
• B) Purchase of merchandise for resale.
• C) Payment of a note payable.
• D) Sale of a piece of land no longer used in operations.

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Definitions:

Order Filling

The process of completing customer orders by retrieving the required products and preparing them for delivery.

Product Margins

The difference between the selling price of a product and the cost associated with producing it, indicating the profit generated per product sold.

Overhead Cost

Expenses not directly tied to production, such as rent, utilities, and administrative salaries.

Product S1

A designated product, referred to as S1, typically used in examples or scenarios within the context of costing or managerial accounting.