A Company's Activities for the Year Ended December 31,2016 Included

question 33

Multiple Choice

A company's activities for the year ended December 31,2016 included the following: • Declared and issued a stock dividend valued at $50,000.
• Paid $975,000 to repurchase bonds.The book value of the bonds was $1,000,000.
• Made a $20,000 principal payment on a bank loan.
How much will be presented as cash flow from financing activities?

• A)$955,000
• B)$975,000
• C)$980,000
• D)$1,030,000

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Definitions:

Uninsured Savings

Savings not protected by government insurance, exposing depositors to potential loss if the financial institution fails.

Reserve Requirement

The minimum amount of reserves a bank must hold against deposits, as mandated by central banking authorities.

Commercial Banks

Financial institutions that provide a range of services, including accepting deposits, providing loans, and offering other financial products.

Bank Failures

The occurrence when a bank is unable to meet its obligations to its depositors or other creditors because it has become insolvent or too illiquid to meet its liabilities.