Which of the Following Is Reported as an Operating Activity

question 95

Multiple Choice

Which of the following is reported as an operating activity in the statement of cash flows?

• A) The purchase of long-lived assets.
• B) The acquisition of treasury stock.
• C) The retirement of bonds.
• D) The payment of prepaid insurance.

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Definitions:

U.S. Income Tax System

The federal government's structured method of collecting revenue from individuals and businesses based on their earnings, with varying rates and brackets.

Special Provisions

Specific clauses or terms added to agreements or contracts that tailor requirements or conditions to particular circumstances.

Consumption Tax

A consumption tax is a tax on the purchase of goods or services, levied at the point of sale, aimed at reducing consumption and raising revenues for governments.

Incentive

A factor, either monetary or non-monetary, that motivates individuals or entities to behave in a certain way.