Which of the Following Is an Operating Activity

question 42

Multiple Choice

Which of the following is an operating activity?

• A)Issuing common stock.
• B)Paying dividends.
• C)Borrowing cash from a bank to acquire a factory.
• D)Paying electricity bills for the month.

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Definitions:

Court's Judgment

The final decision made by a judge or court in a legal case, determining the resolution of the dispute.

Debtor

A person or entity that owes money to another; the opposite of a creditor.

Marginal Cost Curve

A graphical representation showing how the cost to produce one additional unit changes as production increases.

Economic Profit

The total revenue minus explicit and implicit costs; it represents additional income over what could be earned in the next best alternative.