Which of the Following Is Not Classified Among the Operating

question 54

Multiple Choice

Which of the following is not classified among the operating activities in a statement of cash flows?

• A)Payment of interest on a bank loan.
• B)Payment of the principal amount owed on a bank loan.
• C)Payment of an account payable to a merchandise supplier.
• D)Payment of income taxes.

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Definitions:

Cartel Members

Firms or entities that agree to control prices and production to monopolize a market or restrict competition.

Incentive To Cheat

The motivation or tendency to deceive or engage in dishonest practices for personal gain, often seen in competitive situations.

Kinked-Demand Curve

A demand curve that has a flatter slope above the current price than below the current price. Applies to a noncollusive oligopoly firm if its rivals will match any price decrease but ignore any price increase.

Noncollusive

Describes competitive behavior among firms in an industry that do not engage in collusion or agreements to control prices or market shares.