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:

Hong Kong Dollars

The official currency of Hong Kong, abbreviated as HKD.

Canadian Security

A financial instrument issued in Canada, such as stocks, bonds, or other investment vehicles, regulated by Canadian laws.

Purchasing Power Parity

An economic theory that compares different countries' currencies through a "basket of goods" approach to determine their relative purchasing power.

Inflation Rate

The percentage rate at which the general level of prices for goods and services is rising, and, subsequently, purchasing power is falling.