On the Statement of Cash Flows, Which of the Following

question 100

Multiple Choice

On the statement of cash flows, which of the following items would be reported as an operating activity?

• A)A purchase of treasury stock
• B)A payment of dividends
• C)A payment of interest
• D)An issuance of stock

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Definitions:

Economic Events

Economic events are transactions or occurrences that affect the financial position of an entity and can be reliably measured.

Period Cost

Expenses that are not directly tied to the production process and are instead accounted for in the period they occur.

Product Cost

The total of costs directly assigned to the production of goods sold by a company, including materials, labor, and overhead.

Salespersons

Individuals who sell products or services for a company, often working on commission and responsible for generating revenue for the business.