Which of the Following Would Be Considered an Operating Activity

question 34

Multiple Choice

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

• A)dividends paid to stockholders
• B)sale of inventory for cash
• C)payment to purchase equipment
• D)the receipt of cash from sale of equipment

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Definitions:

Efficiency

The ability to accomplish a task or a job with a minimum expenditure of time, effort, and resources.

Proposed Program Section

A section of a plan or proposal that outlines the details, objectives, and activities of a program that is being suggested.

Scholarship

Financial support awarded to a student on the basis of academic or other achievement to help fund their education.

Justification

The reasoning behind a decision or action, often provided to explain why it is appropriate or required.