Which of the Following Would Not Be Reported as a Financing

question 30

Multiple Choice

Which of the following would not be reported as a financing activities cash flow?

• A)Issuing common stock for cash.
• B)Cash dividend payments.
• C)Purchasing treasury stock.
• D)Purchase of a building by signing a note payable.

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Definitions:

Fixed Costs

Expenses that do not change with the level of production or sales, such as rent or salaries.

Variable Cost

A cost that changes with the level of output or production, such as materials and labor costs.

EBIT

Earnings Before Interest and Taxes; a measure of a company's profitability that excludes interest and income tax expenses.

EPS

Earnings Per Share - a company's profit divided by its number of outstanding shares, indicating the profitability on a per-share basis.