Which of the Following Represent Cash Outflows from Financing Activities

question 53

Multiple Choice

Which of the following represent cash outflows from financing activities?

• A)Distributing a stock dividend.
• B)Paying a bond's face value at maturity.
• C)Issuing long-term bonds at a discount.
• D)Paying interest on promissory notes.

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Definitions:

Accrual

The accounting method that recognizes revenues and expenses when they are incurred, regardless of when cash is exchanged.

Unexpired Insurance

The portion of paid insurance premiums that is applicable to future periods, representing coverage that has not yet been used or expired.

Accrued Asset

An asset that represents revenues or incomes that have been earned but not yet received in cash or recorded.

Fiscal Period

A specific time period for which a business conducts financial accounting and reporting, often a year, split into quarters or months.