Which of the Following Would Be a Financing Activities Cash

question 6

Multiple Choice

Which of the following would be a financing activities cash flow?

• A)Common stock dividends received from an investment in another company.
• B)Interest payments.
• C)Purchase of treasury stock.
• D)Purchase of a building by signing a note payable.

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Definitions:

Secured Bonds

Bonds backed by specific assets as collateral to ensure repayment in case of issuer default.

Specific Assets

Assets identified and designated for a particular purpose or project, often distinguished from general or unspecified assets.

Bond Indenture

A legal contract between a bond issuer and bondholders, detailing the terms of the bond such as the interest rate, maturity date, and obligations of both parties.

Investment Company

A corporation or trust engaged in the business of investing the pooled capital of investors in financial securities.