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

question 152

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 involved in 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:

Honesty

The quality of being truthful and free from deceit or fraud.

Holder In Due Course

A legal term for a party that has acquired a negotiable instrument in good faith and for value, and thus has certain protections against defects in title and prior claims.

Consideration

The value (such as money, service, or goods) that is exchanged between parties in a contract, making the agreement legally binding.

Value

The importance, worth, or usefulness of something, often in terms of money, social benefits, or personal significance.