In a Statement of Cash Flows,payments to Acquire Bonds or Mortgages

question 71

Multiple Choice

In a statement of cash flows,payments to acquire bonds or mortgages of other entities should be classified as cash outflows for

• A) lending activities.
• B) operating activities.
• C) investing activities.
• D) financing activities.

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Definitions:

Multilateral Transfer

The transfer of resources (financial, goods, services) between multiple countries or parties without direct reciprocation.

Developing Country

A nation with a lower level of industrialization, a lower standard of living, and a lower Human Development Index (HDI) compared to developed countries.

World Bank

An international financial institution that provides loans and grants to the governments of poorer countries for the purpose of pursuing capital projects.

Privatization

The process of transferring ownership or control of a business or service from the government to private individuals or organizations.