The Cash Flow Statement Reports Inflows and Outflows of Cash

question 6

Multiple Choice

The cash flow statement reports inflows and outflows of cash under which three headings?

• A) Operating activities, investing activities and expense activities
• B) Operating activities, investing activities and equity activities
• C) Operating activities, investing activities and finance activities
• D) Operating activities, investing activities and debt activities

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Definitions:

Self-employment Tax

A levy aimed at self-employed individuals, designed to contribute towards Social Security and Medicare.

AGI Deduction

Deductions from Adjusted Gross Income (AGI), which lower the AGI and reduce taxable income, potentially qualifying taxpayers for various tax benefits based on their adjusted income levels.

Qualified Education Expenses

Expenditures for tuition and related educational costs that are necessary for enrollment at an eligible educational institution.

Student Loan Interest

The interest paid on a loan taken out to fund educational expenses, potentially deductible under certain conditions from your taxable income.