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

question 66

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 related to 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:

National Background

The socio-cultural, economic, and political conditions prevailing in a country that influence individuals and organizations.

Nonprofit Organizations

Organizations that operate for charitable, educational, scientific, or social purposes, rather than for the profit of shareholders or owners.

Individual Donations

Financial contributions made by private individuals to support causes, organizations, or individuals in need.

Special Events

Unique or notable occasions designed and organized to achieve a specific purpose.