Which of the Following Are the Activities That Are Included

question 38

Multiple Choice

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

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

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Definitions:

Tax Rate

The percentage at which an individual or corporation is taxed, which can vary depending on income levels or profit margins.

Variable Cost

Expenditures that fluctuate based on production or sales volume, for instance, materials and manpower.

Required Rate

The minimum rate of return on an investment that a manager or investor is willing to accept, considering its risk.

Marginal Tax Rate

The tax rate that applies to the last dollar of the taxpayer's income, indicating the rate of tax on any additional income earned.