Financial Reporting and Analysis Q136

0. Cash receipts and payments related to dealing or trading securities are classified as:

  • Option : A
  • Explanation : Here is the relevant excerpt from Section 2.1 of the curriculum: “Cash outflows result from cash payments for inventory, salaries, taxes, and other operating- related expenses and from paying accounts payable. Additionally, operating activities include cash receipts and payments related to dealing securities or trading securities (as opposed to buying or selling securities as investments).”
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