Which of the Following Is Not an Operating Activity

question 65

Multiple Choice

Which of the following is not an operating activity?

• A)Cash collections from credit customers
• B)Cash payments for operating expenses
• C)Cash receipts for interest earned
• D)Cash payments for dividends to stockholders

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Definitions:

Just-in-Time Inventory (JIT)

A supply chain management strategy aimed at reducing inventory costs and waste by receiving goods as they are needed in the production process.

Minimize Inventory

A strategy aimed at reducing the amount of inventory to lower storage costs and reduce the risk of stock obsolescence.

Work-in-Process

Inventory items that are in the production process but are not yet completed products.

Parts

Components or pieces that can be combined or assembled to build or repair something.