Which of the Following Would Not Be Included Within the Operating

question 72

Multiple Choice

Which of the following would not be included within the operating activities section of a cash flow statement?

• A)Cash paid for research and development.
• B)Cash paid for insurance.
• C)Cash paid for interest expense.
• D)Cash paid to acquire a patent.

---

Definitions:

Property Tax Expense

The cost incurred by property owners for taxes assessed on their land and buildings, recognized as an expense for the business.

Direct Expense

A cost that can be directly attributed to a specific cost object, such as a product, department, or project, making it easy to trace the expense directly to its source.

Profit Center

A part of an organization that is directly responsible for generating its own revenue and profits.

Fixed Assets

Long-term tangible assets, such as buildings, machinery, and equipment, used in operating a business and not expected to be converted to cash in the current or next fiscal year.