In Preparing a Company's Statement of Cash Flows for the Most

question 246

Multiple Choice

In preparing a company's statement of cash flows for the most recent year,the following information is available: Net cash flows from investing activities for the year were:

• A)$234,000 of net cash used.
• B)$120,000 of net cash provided.
• C)$340,000 of net cash used.
• D)$259,000 of net cash used.
• E)$280,000 of net cash provided.

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Definitions:

Creditors

Individuals or entities to whom money is owed by another individual or entity.

Chapter 7

A bankruptcy process providing for the liquidation of a debtor's non-exempt assets to pay off creditors.

Automatic Stay

A legal provision that halts lawsuits, foreclosures, garnishments, and all collection activity against the debtor the moment a bankruptcy petition is filed.

Repossess

The act of a lender taking back property from the borrower, typically due to failure to meet the terms of the loan agreement, such as defaulting on payments.