All of the Following Are Categories in the Operating Activities

question 90

Multiple Choice

All of the following are categories in the operating activities section using the direct method in the statement of cash flows except

• A)changes in amortization
• B)changes in accounts receivable
• C)changes in inventory
• D)changes in accounts payable

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Definitions:

Negative Externalities

Costs suffered by a third party due to an economic transaction they were not involved in.

Public Goods

Goods that are non-excludable and non-rivalrous, meaning individuals cannot be effectively excluded from use and where use by one individual does not reduce availability to others.

Marginal Social Benefit

The additional benefit to society from consuming one more unit of a good or service, considering both private and external benefits.

Marginal Social Cost

The additional cost to society as a whole for producing one more unit of a good or service.