In Relation to the Cash Flow Statement, Purchases and Sales

question 54

Multiple Choice

In relation to the cash flow statement, purchases and sales of long-term assets are examples of:

• A)investing activities.
• B)accrual activities.
• C)financing activities.
• D)operating activities.

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Definitions:

Average Variable Cost

The cost per unit of variable inputs divided by the total quantity of output produced.

Variable Cost

Costs that change in proportion to the good or service that a business produces.

Quantity of Output

The total amount of goods or services produced by a firm or economy over a specific period.

Total Cost

The total expenses involved in creating goods or services, encompassing both constant and changeable costs.