The Activities That Are Included in the Operating Activities Section

question 155

Multiple Choice

The activities that are included in the operating activities section of the statement of cash flows are ________.

• A) activities that involve stockholders' equity
• B) activities that create revenue or expenses
• C) activities that increase or decrease long-term assets
• D) activities that pertain to construction of new facilities

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Definitions:

Present Value

Today's value of a future money sum or series of cash flows, estimated using an agreed upon return rate.

Actuarial Information

Data and analysis related to the calculation of insurance risks and premiums, often involving life expectancy, health risks, and financial implications.

Bond Issue

The process by which a company or governmental entity raises funds by selling bonds to investors, which are debt securities obligating the issuer to pay interest and repay principal at a later date.

Effective Interest Method

An accounting technique used to allocate the bond premium or discount over the life of the bond in a way that results in a constant rate of interest.