Which of the Following Is Considered an Operating Activity on the Statement

question 15

Multiple Choice

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

• A) dividends paid to stockholders
• B) sale of merchandise inventory for cash
• C) payment to purchase equipment
• D) the receipt of cash from sale of equipment

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Definitions:

Financial Security

The condition of having stable income or other resources to support a standard of living now and in the foreseeable future.

Death Penalty

A legal punishment where the state executes a person as retribution for a crime deemed deserving of death, often surrounded by moral and legal debates.

Deviance

Behaviors or actions that violate societal norms and expectations, which can result in social stigma.

Deterrent

Something that discourages or is intended to discourage someone from doing something by instilling doubt or fear of the consequences.