Which of the Following Describes the Operating Activities Section of the Statement

question 66

Multiple Choice

Which of the following describes the operating activities section of the statement of cash flows?

• A) It reports cash receipts and cash payments that increase or decrease long-term assets.
• B) It includes cash inflows and outflows related to long-term liabilities and equity.
• C) It reports on activities that create revenue or expenses for the entity's business.
• D) It reports on how cash flows affect the total assets and total liabilities.

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Definitions:

Underwriter

An entity that assesses and assumes the risk of another party, often in financial markets, insurance, or public offerings.

Issuing Securities

The process of offering new stocks or bonds to the public or existing shareholders to raise capital.

Legal Fees

Charges for the professional services provided by lawyers or attorneys.

Abnormal Returns

Returns on a stock or portfolio that exceed the benchmark or expected return based on the risk assessment.