Which of the Following Are the Activities That Are Included

question 57

Multiple Choice

Which of the following are the activities that are included in the operating activities section of the cash flow statement?

• A)Activities that obtain the cash needed to launch and sustain the business are included in the operating activities section.
• B)Activities that increase or decrease non-current assets are included in the operating activities section.
• C)Activities that pertain to construction of new facilities are included in the operating activities section.
• D)Activities that create revenue or expenses in the entity's major line of business are included in the operating activities section.

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Definitions:

Hotel Rooms

Accommodation units provided by hotels for temporary occupancy by guests, varying in size, quality, and amenities offered.

Price Floor

Price Floor is a government or regulatory-imposed minimum price set above the equilibrium price, preventing the price of a good or service from falling below it.

Equilibrium Price

The price at which the quantity of a good or service demanded equals the quantity supplied, resulting in market balance.

Surplus

A situation where the quantity of a product or service supplied exceeds the quantity demanded at the current price.