Which of the Following Statements Is CORRECT

question 26

Multiple Choice

Which of the following statements is CORRECT?

• A) In the statement of cash flows, a decrease in accounts receivable is reported as a use of cash.
• B) Dividends do not show up in the statement of cash flows because dividends are considered to be a financing activity, not an operating activity.
• C) In the statement of cash flows, a decrease in accounts payable is reported as a use of cash.
• D) In the statement of cash flows, depreciation charges are reported as a use of cash.
• E) In the statement of cash flows, a decrease in inventories is reported as a use of cash.

---

Definitions:

Farm Prices

The prices that farmers receive for their products, including crops and livestock, which can fluctuate based on supply, demand, and market conditions.

Farm Work

Labor and activities related to cultivating land and producing agricultural goods.

Underemployed

Underemployed refers to individuals working less than they would like to, either in terms of hours or in jobs that do not utilize their skills fully, often leading to lower incomes and job satisfaction.

Human Capital

The sum of abilities, insights, and non-physical resources of people which can be employed to produce financial gain for the person, their company, or the community.