Which of the Following Is a Cash Inflow from an Operating

question 118

Multiple Choice

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

• A) sold treasury stock for cash
• B) issued common stock
• C) received interest revenue in cash
• D) borrowed money on a long-term note

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Definitions:

Profit Margin

A financial metric that measures the percentage of revenue that exceeds the cost of goods sold, indicating the profitability of a company.

Profit Margin

A financial metric indicating the percentage of revenue that exceeds the costs of goods sold, showing the profitability of a company or product.

DuPont Formula

A financial analysis method that breaks down return on equity into three components: profit margin, asset turnover, and financial leverage, to help understand a company's financial performance.

Operating Income

Earnings generated from a company's core business operations, excluding deductions of interest and taxes.