Which of the Following Cash Flows Would Be Included in the Operating

question 33

Multiple Choice

Which of the following cash flows would be included in the operating activities section of the statement of cash flows? Assume use of the direct method.

• A)Cash received from a bond issue.
• B)Cash paid to purchase equipment.
• C)Cash receipts from dividends.
• D)Cash gains and losses from the sale of operational assets.

---

Definitions:

Vitality Index

A measure of innovation that expresses the percentage of sales from new products or services introduced over a certain period.

Total Sales Revenue

The entire amount of income generated by the sale of goods or services related to the company's primary operations.

Formal Decision-making Process

A structured approach to decision-making that involves systematic steps such as identifying a problem, generating alternatives, evaluating alternatives, and making a decision.

Stage-Gate®process

A project management approach that divides the process of bringing a new product to market into distinct stages separated by decision-making checkpoints or "gates."