The Appropriate Section in the Statement of Cash Flows for Reporting

question 130

Multiple Choice

The appropriate section in the statement of cash flows for reporting the receipt of cash dividends from investments in securities is:

• A) Investing activities.
• B) Schedule of noncash investing or financing activity.
• C) Financing activities.
• D) Operating activities.
• E) This is not reported on the statement of cash flows.

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Definitions:

Marginal Cost

The additional cost incurred by producing one more unit of a good or service.

Marginal Benefit

The additional benefit derived from producing one more unit of a good or service.

Accounting Profit

The total revenue of a business minus its explicit costs; essentially the net income reported on the financial statements.

Economic Profit

The difference between the total revenue received by a business and the total costs, including both explicit and implicit costs.