Which of the Following Items Is Classified as Part of 'Operating

question 20

Multiple Choice

Which of the following items is classified as part of 'operating activities' in the Statement of Cash Flows?

• A)Depreciation of non-current assets
• B)Receipts from customers from the sale of goods
• C)Bad debts expense
• D)Proceeds from the sale of non-current assets

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Definitions:

Common Stock

A type of security that represents ownership in a corporation, with holders usually having voting rights and potentially receiving dividends.

Statement of Cash Flows

A financial report that shows how changes in balance sheet and income accounts affected cash and cash equivalents, breaking the analysis down to operating, investing, and financing activities.

Dividends

Disbursements by a company to its stockholders, often as a profit-sharing mechanism.

Obligations

Legal or financial duties that one party is bound to perform for another, such as the repayment of a loan.