Cash Flows from Operating Activities Include

question 115

Multiple Choice

Cash flows from operating activities include:

• A)changes in accounts receivable.
• B)paying principal to lenders.
• C)purchases of equipment.
• D)proceeds from stock issuance.

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Definitions:

Stated Value

A value that has been assigned to a corporation's stock that does not have a par value, often used for accounting purposes.

Treasury Stock

Shares that were issued and later reacquired by the issuing corporation.

Additional Paid-In Capital

The excess amount paid by investors over the par value of shares during equity issuances, reflecting additional funding invested in the company.

Contra to Owners' Equity

An account that reduces the total amount of owners' equity, such as drawings or expenses subtracted from the capital account in a sole proprietorship or partnership.