The Appropriate Section in the Statement of Cash Flows for Reporting

question 151

Multiple Choice

The appropriate section in the statement of cash flows for reporting the receipt of cash dividends from investments in securities is:

• A)Operating activities.
• B)Financing activities.
• C)Investing activities.
• D)Schedule of noncash investing or financing activity.
• E)This is not reported on the statement of cash flows.

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Definitions:

Provisional Income

Income calculation used to determine if a taxpayer's Social Security benefits are taxable.

Filing Status

A category that determines the rate at which an individual is taxed, based on marital status and sometimes other factors.

Economic Benefit

The advantage gained from salary, wages, investments, or any other source that increases an individual's wealth or resources.

Exempt

Not subject to an obligation, duty, or requirement; often used in the context of income that is not subject to taxation.