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

---

Definitions:

2005 Bankruptcy Reform Act

Legislation officially known as the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, designed to overhaul U.S. bankruptcy law by adding means testing to discourage Chapter 7 filings and to reduce bankruptcy fraud.

Federal District

A division within a country, distinct from the states or provinces, that usually encompasses the nation's capital city and has different governing laws.

Economic Downturn

A period of reduced economic activity characterized by declining GDP, increased unemployment, and lower consumer spending.

Bankruptcy Reform Act

Legislation intended to overhaul the bankruptcy system, typically making it more difficult for individuals to file for bankruptcy and to discharge certain types of debt.