In Preparing a Company's Statement of Cash Flows for the Most

question 148

Multiple Choice

In preparing a company's statement of cash flows for the most recent year,Ransom Corp.reported the following information: Net cash flows from financing activities for the year were:

• A)$230,000 of net cash used.
• B)$230,000 of net cash provided.
• C)$108,000 of net cash used.
• D)$138,000 of net cash used.
• E)$138,000 of net cash provideD.

---

Definitions:

Money Market

A segment of the financial market where short-term financial assets are traded, facilitating the borrowing and lending of short-term funds.

Liquidity Preference Theory

A theory that suggests individuals prefer to have their resources in liquid form as opposed to investing in long-term assets, affecting interest rates and economic activity.

Money Demanded

The total amount of money that households and businesses wish to hold at any given interest rate, at a specific time.

Federal Funds Rate

The interest rate at which banks lend reserves to each other overnight, serving as a key monetary policy tool of the Federal Reserve.