The Major Operating Activity on the Statement of Cash Flows

question 46

Multiple Choice

The major operating activity on the statement of cash flows that decreases cash is ________.

• A)purchases of inventory on account
• B)purchases of equipment for cash
• C)payment of rent
• D)payment for inventory purchases

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Definitions:

Metrics

Quantitative measures used to track and assess the status of specific business processes, performance, and outcomes, aiding in decision-making and performance evaluation.

Gross Margin

The difference between the revenue a company brings in from selling goods and the cost of those goods sold, typically expressed as a percentage of revenue.

COGS

Cost of Goods Sold; the direct costs attributable to the production of the goods sold in a company.

Service Quality

Refers to the comparison between customer expectations regarding a service and their perception of the service received, focusing on how well a service meets or exceeds customer standards.