Which of the Following Are the Activities That Are Included

question 48

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
• B)activities that create revenue or expenses
• C)activities that increase or decrease long-term assets
• D)activities that pertain to construction of new facilities

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Definitions:

Diseconomies of Scale

The phenomenon where production costs per unit increase as an operation scales up, typically due to inefficiencies or increased complexities.

Long-Run

The long-run refers to a period in economics where all factors of production and costs are variable, allowing all inputs to be adjusted.

Short-Run

A period in economics during which at least one factor of production is fixed, focusing on immediate effects and adjustments.

Spreading Effect

A phenomenon in economics where an initial investment leads to additional benefits that spread beyond the immediate context, often stimulating further economic activity.