Cash from Operating Activities Includes Cash ________

question 103

Multiple Choice

Cash from operating activities includes cash ________.

• A)collected from customers
• B)paid for land
• C)received from loans
• D)paid for dividends

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Definitions:

Finished Goods Inventory

The total value of all completed products that have not yet been sold by the company.

Direct Labor

The cost of wages for employees who are directly involved in the production of goods or the provision of services.

Cash Collections

The process of receiving and processing payments from customers or debtors.

Cash Disbursements

Financial outflows or payments made by a business, often recorded in a ledger for accounting purposes.