Which Would Not Be Included in the Operating Activities Section

question 85

Multiple Choice

Which would not be included in the operating activities section of a direct method statement of cash flow?

• A)Changes in amortization
• B)Changes in accounts receivable
• C)Changes in inventory
• D)Changes in accounts payable

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Definitions:

Short-Run Cost

Expenses that a firm faces in the short term, typically involving costs that vary with the level of output.

Product Promotion

The activities undertaken by a business to make its products or services known to potential customers and persuade them to buy.

Product Differentiation

The process of distinguishing a product or service from others to make it more attractive to a particular target market.