Which of the Following Is Considered an Operating Activity on the Statement

question 15

Multiple Choice

Which of the following is considered an operating activity on the statement of cash flows prepared using the direct method?

• A) dividends paid to stockholders
• B) sale of merchandise inventory for cash
• C) payment to purchase equipment
• D) the receipt of cash from sale of equipment

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Definitions:

Onscreen Form

An electronic form displayed on a computer screen that allows a user to enter or modify data.

Make Deposits Window

A feature in accounting software where users can record and manage the deposit of funds into bank accounts.

Journal Entry

A record of a business transaction in an accounting system that affects at least two accounts, one debit and one credit.

Debits Checking

The process of recording or deducting sums of money from a checking account, based on transactions made.