Which One of the Following Is NOT a Cash Flow

question 61

Multiple Choice

Which one of the following is NOT a cash flow from operating activities?

• A) Cash payments on the principal of long-term debt
• B) Payments for utilities and rent
• C) Payments to purchase raw materials
• D) Cash receipts from selling goods and services

---

Definitions:

Incorporates

The act of forming a new corporation by filing required documents with the state, or integrating components into a whole.

Business

A business is an organization or enterprising entity engaged in commercial, industrial, or professional activities with the aim of earning profits.

Nonbinding Preincorporation Contracts

Agreements made on behalf of a corporation before it is legally formed, which typically do not hold the corporation responsible once it is established.

Personal Liability

The state of being legally responsible for the debts or actions of oneself, not shielded by corporate or other legal entities.