The Item That Would Not Be Included in the Operating

question 47

Multiple Choice

The item that would not be included in the operating section of a statement of cash flows is:

• A)cash interest received.
• B)cash received from the sale of surplus machinery.
• C)cash received from sales.
• D)cash payment of expenses.

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Definitions:

Industry Specific

Tailored or particularly relevant to a certain sector or type of business.

Dividend Growth Model

A valuation method used to predict the price of a company's stock by using projected dividends and discounting them back to present value.

Retained Earnings

The portion of a company's profits that is retained or re-invested in the business instead of being paid out as dividends to shareholders.

Marginal Cost Of Capital

The cost of obtaining an additional dollar of new capital, which can influence investment and financing decisions.