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

---

Definitions:

Resource Demand

The desire for resources (such as labor, capital, and natural resources) based on their contribution to the production process, influenced by factors like technological change and product demand.

Elasticity of Resource Demand

A measure of how much the quantity demanded of a resource changes in response to a change in its price.

Resource Quantity Demanded

Refers to the total quantity of a resource that buyers are willing and able to purchase at a given price over a specific period.

Total Costs

The sum of fixed and variable expenses incurred by a business in the production of goods or services.