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:

Dated

Indicative of a time that has passed or something outdated in style or technology.

Signature

A person's handwritten depiction of their name, or a unique mark representing themselves, used for authorization or agreement.

Original Records

Documents or materials that are first-created or primary sources of information, not derived from something else.

Court Case

A legal dispute brought before a court of law for adjudication, involving plaintiffs, defendants, and evidence.