On a Statement of Cash Flows, Which Is Considered an Operating

question 111

Multiple Choice

On a statement of cash flows, which is considered an operating activity?

• A) Sale of securities
• B) Purchase of fixed assets
• C) Purchase of securities
• D) Depreciation

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Definitions:

Internal Control System

A process implemented by a company to help ensure the integrity of financial and accounting information, promote accountability, and prevent fraud.

Manufacturing Costs

The total expenses involved in the manufacture of products, including direct materials, direct labor, and manufacturing overhead.

Cost of Goods Manufactured

The total cost incurred to produce goods during a specific period, including materials, labor, and overhead costs.

Cost of Goods Sold

The total expense directly associated with producing or purchasing goods that have been sold.