Which One of the Following Is the Definition of Operating

question 87

Multiple Choice

Which one of the following is the definition of operating cash flow?

• A) revenue minus expenses
• B) cash realized from the sale of assets
• C) cash flow originating from the issuance of securities
• D) cash generated by a firm's normal business activities
• E) pre-tax income

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Definitions:

Financial Statement

A summary report that comprehensively shows a company's financial performance and position at a specific point in time, including the balance sheet, income statement, and cash flow statement.

Statement of Operations

A financial report detailing a company's revenues, expenses, and profits over a specific period, also known as an income statement.

Revenues

Income earned from normal business operations and other activities, often reflected at the top of an income statement.

Financing Activities

Transactions and events where a business either raises funds from financial markets or repays funds previously raised; includes issuance or repurchase of equity and debt.