Which of the Following Is a Cash Inflow from an Operating

question 118

Multiple Choice

Which of the following is a cash inflow from an operating activity on a statement of cash flows prepared using the direct method?

• A) sold treasury stock for cash
• B) issued common stock
• C) received interest revenue in cash
• D) borrowed money on a long-term note

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Definitions:

Total Profit

Total profit is the financial gain made by a business after subtracting all expenses from the total revenue generated from sales and other sources.

Market Share

The share of a market that a certain product or company holds.

Profit-Maximizing

A process that enables a business to identify the price and production level that results in the greatest profit.

Marginal Revenue

The revenue increase from selling one more unit of a product or service.