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

question 24

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:

Financial Capital

The funds that corporations and individuals use to invest in and finance new business ventures and operations.

Real Capital

Physical assets that are used in the production of goods and services, such as machinery, buildings, and equipment.

Vicious Circle

A complex sequence of negative events or conditions that reinforce each other, leading to a deteriorating situation or a series of worsening cycles.

Infrastructure Problem

Issues or challenges related to the basic facilities, services, and installations needed for the functioning of a community or society, like roads, bridges, and power supplies.