Which of the Following Are the Activities That Are Included

question 38

Multiple Choice

Which of the following are the activities that are included in the operating activities section of the statement of cash flows?

• A) Activities that obtain the cash needed to launch and sustain the business are included in the operating activities section.
• B) Activities that create revenue or expenses in the entity's major line of business are included in the operating activities section.
• C) Activities that increase or decrease long-term assets are included in the operating activities section.
• D) Activities that pertain to construction of new facilities are included in the operating activities section.

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Definitions:

Third Parties

Individuals or entities who are not directly involved in a legal agreement or transaction but may be affected by it or have interests that are impacted.

Clients

Individuals or organizations that engage the professional services or advice of another.

Common Law

A legal system based on judicial precedents and customs rather than statutory laws.

Tort Liability

Legal responsibility that arises from the commission of a tort, which is a civil wrong, such as negligence, that causes harm to another.