Which of the Following Will Be Categorized as an Operating

question 143

Multiple Choice

Which of the following will be categorized as an operating activity on the statement of cash flows?

• A)cash received by selling old equipment
• B)cash paid for purchase of new machinery
• C)cash paid for purchase of raw materials
• D)cash received from issue of shares

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Definitions:

Overtime

Working hours that exceed the standard work hours defined by labor laws or agreements.

Solve

The process of finding an answer or explanation for a problem or question.

Drapery Store

A retail establishment that specializes in selling cloth and other materials for windows and home decoration.

Gold Fabric

A material made using gold threads, often used in luxury textiles or high-end fashion.