Which of the Following Would Be Considered an Operating Activity

question 83

Multiple Choice

Which of the following would be considered an operating activity on the statement of cash flows?

• A) Dividends paid to stockholders
• B) The sale of inventory
• C) Payment to purchase equipment
• D) The receipt of cash from sale of equipment

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Definitions:

Concepts

Mental representations of categories of objects, events, or ideas based on shared properties.

Categorization

The process of recognizing, differentiating, and understanding objects, concepts, or experiences by grouping them into categories based on shared characteristics.

Superordinate

A term used to describe a higher level or more general category under which lower level categories or entities are grouped.

Subordinate

A person or thing that is of lesser importance, rank, or order.