Which of the Following Items Would Not Be Classified as an Operating

question 116

Multiple Choice

Which of the following items would not be classified as an operating activity on the statement of cash flows?

• A) Cash received from customers.
• B) Dividends paid to the company's own stockholders.
• C) Payments to government agencies for taxes.
• D) Cash paid to compensate employees.

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Definitions:

Disinflation

A reduction in the rate of inflation, indicating a slowdown in the increase of price levels across the economy, but not an absolute decline in prices.

Deflation

A decrease in the general price level of goods and services, often caused by a reduction in the supply of money or credit.

Wages

Payments made to workers for their labor, typically based on hours worked or amount produced, and a key factor in employment contracts.

Rent

Payment made periodically by a lessee to a lessor for the use of land, a building, or another property.