Which of the Following Items Are Included as an Operating

question 52

Multiple Choice

Which of the following items are included as an operating activity on the statement of cash flows,using the direct method?

• A) purchase of treasury stock
• B) payment of dividends
• C) issuance of stock
• D) payment of interest expense

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Definitions:

Acquiring Assets

The process of obtaining ownership or control of assets, which can include tangible property like real estate or intangible property like intellectual property rights.

Dissenting Shareholder Rights

Rights granted to shareholders who disagree with major corporate actions, like mergers, allowing them to receive payment for the fair value of their shares.

Merger Approval

The authorization granted by a regulatory body or shareholders for two or more companies to consolidate into one entity.

Block Merger

A strategy in business consolidation where two or more companies with similar operations merge to create a larger entity.