Diamonds have a higher monetary value than water because: a. diamonds are scarce. c. water has limited value. b. diamonds are a necessity. d. water has little utility.

Though diamonds are mostly used for aesthetic purposes, its price is far higher than a gallon of water. This is because (A) diamonds are scarce compared to water.

The principle of scarcity states that objects that are rarer in the market would be valued at a higher price compared to things that can be found everywhere. Since water is more commonly found than diamonds, water is cheaper than diamonds.

Under GAAP, cash receipts from interest and dividends are classified as operating activities. Operating activities are the main business activities for the company. The operating activities for the company are manufacturing, distributing, marketing and selling the product or service to consumers.