The correct answer is: Cash received from the sale of surplus machinery.

Here's a step-by-step explanation:

1. The statement of cash flows is divided into three sections: operating activities, investing activities, and financing activities.

2. Operating activities include the cash effects of transactions that create revenues and expenses. They generally include transactions in the "income statement items". Examples include cash received from sales and cash payment of expenses.

3. Cash dividends received can also be classified as operating activities, as they are returns on investments in other companies and are similar to interest received, which is an operating activity.

4. However, cash received from the sale of surplus machinery would not be classified as an operating activity. This is because the sale of surplus machinery is considered an investing activity. Investing activities include making and collecting loans and acquiring and disposing of investments (both debt and equity) and property, plant, and equipment.

5. Therefore, the statement that "Cash received from the sale of surplus machinery" would not be classified as an operating item in a statement of cash flows is correct.

Question

The correct answer is: Cash received from the sale of surplus machinery.

Here's a step-by-step explanation:

1. The statement of cash flows is divided into three sections: operating activities, investing activities, and financing activities.

2. Operating activities include the cash effects of transactions that create revenues and expenses. They generally include transactions in the "income statement items". Examples include cash received from sales and cash payment of expenses.

3. Cash dividends received can also be classified as operating activities, as they are returns on investments in other companies and are similar to interest received, which is an operating activity.

4. However, cash received from the sale of surplus machinery would not be classified as an operating activity. This is because the sale of surplus machinery is considered an investing activity. Investing activities include making and collecting loans and acquiring and disposing of investments (both debt and equity) and property, plant, and equipment.

5. Therefore, the statement that "Cash received from the sale of surplus machinery" would not be classified as an operating item in a statement of cash flows is correct.

Knowee AI · Accepted Answer

The correct answer is: Cash received from the sale of surplus machinery.

Here's a step-by-step explanation:

1. The statement of cash flows is divided into three sections: operating activities, investing activities, and financing activities.

2. Operating activities include the cash effects of transactions that create revenues and expenses. They generally include transactions in the "income statement items". Examples include cash received from sales and cash payment of expenses.

3. Cash dividends received can also be classified as operating activities, as they are returns on investments in other companies and are similar to interest received, which is an operating activity.

4. However, cash received from the sale of surplus machinery would not be classified as an operating activity. This is because the sale of surplus machinery is considered an investing activity. Investing activities include making and collecting loans and acquiring and disposing of investments (both debt and equity) and property, plant, and equipment.

5. Therefore, the statement that "Cash received from the sale of surplus machinery" would not be classified as an operating item in a statement of cash flows is correct.

Which of these would not be classified as an operating item in a statement of cash flows?Group of answer choicesCash dividends received.Cash payment of expenses.Cash received from sales.Cash received from the sale of surplus machinery.

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