Which of the Following Does Not Represent a Cash Flow

question 85

Multiple Choice

Which of the following does not represent a cash flow relating to operating activities?

• A)Cash dividends paid to stockholders.
• B)Cash received from customers.
• C)Interest paid to bondholders.
• D)Cash paid for salaries.Dividends paid to stockholders are considered cash flows relating to financing activities.However, U.S.GAAP requires interest paid to bondholders to be considered an operating activity.

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Definitions:

Middle Childhood

A period in child development, typically from ages 6 to 12, characterized by the development of logical thinking, independence, and peer relationships.

Developmental Issue

Pertains to problems or delays in the physical, emotional, behavioral, or cognitive areas of growth experienced during the stages of human development.

Erikson's Stages

A theory of psychological development proposed by Erik Erikson that outlines eight stages from infancy to adulthood, each characterized by a specific conflict.

Crises

Times of intense difficulty, trouble, or danger, characterized by a need for decisive action to resolve the situation.