Which of the Following Does Not Decrease the Cash Flow

question 122

Multiple Choice

Which of the following does not decrease the cash flow from operating activities?

• A)The prepayment of an expense.
• B)The purchase of operating equipment.
• C)The payment of interest.
• D)The prepayment of an expense,the purchase of operating equipment,and the payment of interest all decrease cash from operating activities.

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Definitions:

Constant Slope

A line on a graph that has the same steepness throughout, indicating a uniform rate of change.

Price Elasticity

Price elasticity measures how the quantity demanded or supplied of a good changes in response to a change in its price.

Linear Demand

A type of demand relationship where changes in price lead to direct, proportional changes in quantity demanded.

Price Elastic

An assessment of the influence that price changes have on the consumer's purchasing volume of a good.