Which One of the Following Below Would Not Be Classified

question 5

Multiple Choice

Which one of the following below would not be classified as an operating activity?

• A) interest expense
• B) income taxes
• C) payment of dividends
• D) selling expenses

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Definitions:

Canadian Tax Law

Canadian tax law is the legal framework governing the collection of taxes in Canada, including both federal and provincial taxes.

Residual Dividend Model

A strategy for determining dividend payments based on the residual or leftover earnings after all operational and expansion costs have been met.

Clientele Effect

A theory suggesting that changes in dividend policy will attract different types of investors based on their personal preferences for dividend payouts.

Stock Repurchases

This is a process where a company buys back its own shares from the marketplace, potentially reducing the total number of outstanding shares and often seen as a way to return value to shareholders.