With Respect to the Statement of Cash Flows,activities That Affect

question 59

Multiple Choice

With respect to the statement of cash flows,activities that affect common stock accounts are referred to as:

• A)capital activities.
• B)operating activities.
• C)investing activities.
• D)financing activities.
• E)None of the answer choices is correct.

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Definitions:

Sales Invoice

A bill sent to customer(s) reflecting a credit sale.

Gross Method

Gross Method in accounting is a method for recording purchases at the full invoice price without deducting any cash discounts offered.

Periodic Inventory Method

An accounting approach that updates inventory and cost of goods sold at the end of an accounting period based on a physical count.

Merchandise

Goods or products that are bought and sold by businesses in the market.