Which Is Not Reported as an Operating Activity on a Cash

question 130

Multiple Choice

Which is not reported as an operating activity on a cash flow statement prepared using the indirect method?

• A)Decreases in inventories
• B)Proceeds from the sales of investments
• C)Interest expense
• D)Increases in Accounts Payable

---

Definitions:

Principle

The original sum of money borrowed in a loan, or put into an investment, exclusive of any interest or dividends.

Fossil Fuels

Fossil fuels are natural fuels such as coal, oil, and natural gas derived from the remains of living organisms that have been transformed over millions of years through heat and pressure.

Nonrenewable Energy Sources

Energy resources such as coal, oil, and natural gas that cannot be replenished in a short period of time and will eventually deplete.

Scarce Resources

Resources that are limited in availability and can be used in the production of goods and services.