Which of the Following Items Would Be Included as an Operating

question 51

Multiple Choice

Which of the following items would be included as an operating activity on the statement of cash flows, using the direct method?

• A)purchase of treasury stock
• B)payment of dividends
• C)issuance of stock
• D)payment of interest expense

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Definitions:

Common Shares Outstanding

The number of shares that are currently owned by investors, including restricted shares owned by company officers and insiders.

Liabilities

Liabilities refer to the financial obligations or debts that a company owes, which must be paid to others.

Treasury Stock

Shares that were once part of the outstanding shares but were bought back by the company, reducing the amount of stock on the open market.

Par Value

The stated value of a bond, stock share, or coupon as designated by the issuer.