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.

---

Definitions:

Voluntary Act

A behavior or action undertaken by an individual willingly, without coercion.

Observable

Capable of being seen or noticed through direct observation.

Constructionists

Advocates of constructionism, a theory that suggests knowledge and reality are not objective but constructed by societal or cultural contexts.

Social Control

Mechanisms, strategies, and institutions society uses to regulate individual and group behavior, aiming to conform to norms and rules.