Which of the Following Items Would Not Be Reported in the Financing

question 71

Multiple Choice

Which of the following items would not be reported in the financing activities section of the statement of cash flows?

• A) payment of dividends
• B) receipt from note receivable
• C) resale of treasury stock
• D) retirement of bonds payable

Apply vertical analysis to interpret the relative size of financial statement items.

Understand the concept and calculation of liquidity ratios including the current ratio.

Calculate and interpret the average collection period and receivables turnover ratio.

Differentiate between liquidity, solvency, profitability, and leverage ratios.

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Definitions:

Regulatory Capture

A situation where regulatory agencies are dominated by the industries they are supposed to be regulating, leading to decision making that benefits the industry at the expense of the public good.

Economic Efficiency

A situation in which it is not possible to improve overall economic welfare by reallocating resources amongst individuals, implying no waste is occurring.

Deregulated Industry

An industry where government restrictions on business operations, such as price controls and market entry, have been reduced or eliminated.

Pork-Barrel Politics

involves government spending for localized projects secured primarily to bring money to a representative's district, often criticized as wasteful or aimed at gaining political favor.