Which of the Following Operating Activities Results in a Cash

question 147

Multiple Choice

Which of the following operating activities results in a cash outflow?

• A) decreasing accounts payable
• B) collecting accounts receivable
• C) making cash sales
• D) recording deposits as unearned revenue

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Definitions:

Revenue Formulas

Mathematical equations or models used to predict or calculate the income generated from business activities over a period.

Activity Variances

The differences between budgeted and actual costs in an activity-based costing system, indicating areas of over or underperformance.

Jeep Tours

A type of adventurous tour or excursion that involves exploring locations using a jeep.

Guests

Individuals who are invited or visit a place where they do not live or work.