Which of the Following Would Not Be Classified as an Operating

question 7

Multiple Choice

Which of the following would not be classified as an operating activity?

• A) Interest income
• B) Income tax expense
• C) Dividend income
• D) Payment of dividends

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Definitions:

Premium Payment

The amount paid for an insurance policy, either as a lump sum or in installments.

Cash Value

The amount available in cash for an insurance policy or investment account, often accessible to the policyholder or investor.

Corporate Bonds

Debt securities issued by corporations to raise capital, with the expectation that they will pay back the principal along with interest.

Certificate of Deposit

A savings certificate with a fixed maturity date and specified fixed interest rate that is issued by banks.