Which of the Following Would Be Classified as an Operating

question 1

Multiple Choice

Which of the following would be classified as an operating activity on a cash flow statement?

• A) Purchase of a building
• B) Purchase of inventory
• C) Repayment of loan
• D) Issue of shares

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Definitions:

Toy Department

A specialized retail section dedicated to selling toys and games.

Profit Center

A branch or division of a company that is accounted for on a standalone basis for profit calculation.

Cost Center

A segment of a company that does not directly generate revenue but incurs costs, focusing on controlling expenses and efficiency.

Generate Revenue

The process of earning money from business activities, including sales of goods or services.