All of the Following Activities Are Classified as Financing Activities

question 70

Multiple Choice

All of the following activities are classified as financing activities on a statement of cash flows except ________.

• A) distribution of dividends in the form of stock
• B) issuance of serial bonds
• C) payment of mortgage
• D) sale of treasury stock

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Definitions:

Carrying Value

The book value of assets and liabilities reported on the balance sheet, calculated as original cost less any depreciation, amortization, or impairment costs.

GAAP

Generally Accepted Accounting Principles; the standard framework of guidelines for financial accounting used in any given jurisdiction.

Market Value

The current price at which an asset or service can be bought or sold in a fair and open market.

Bond Interest Expense

The cost incurred by an entity for the interest due on its issued bonds over a specific period.