Which of the Following Would Be an Example of an Investing

question 51

Multiple Choice

Which of the following would be an example of an investing activity on the Statement of Cash Flows?

• A)issuance of bonds payable
• B)purchase of bonds as an investment
• C)issuance of common shares
• D)collection of rent from tenants

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Definitions:

Monthly Deposits

Regular payments or investments made into a particular account or scheme every month.

Investment

The action or process of investing money for profit or material result.

Compounded Semi-Annually

An interest calculation method where interest is added to the principal balance twice a year, leading to more interest accrued over time than if compounded once a year.

Monthly Payments

These are payments made once a month, as in a loan or lease, towards reducing the outstanding balance owed.