Which of the Following Would Be Classified as an Operating

question 31

Multiple Choice

Which of the following would be classified as an operating activity on the statement of cash flows using the direct method?

• A)Cash dividends paid.
• B)Cash received from selling equipment.
• C)Cash paid to retire bonds payable at maturity.
• D)Cash received from accounts receivable collections.

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Definitions:

Cash Payment

The act of settling a debt or purchasing an asset with cash, as opposed to using credit.

Cash In Advance

A payment method where payment is made before goods or services are delivered.

Ticket Sales

Revenue generated from selling tickets for events such as concerts, movies, sports, and other performances.

Revenue Earned

The total amount of income generated by the sale of goods or services related to the company's primary operations.