Which One of the Following Would You Expect to Find

question 64

Multiple Choice

Which one of the following would you expect to find as part of cash flows from investing activities?

• A)The issuance of common stock in exchange for a factory
• B)Cash dividends paid
• C)Cash inflows from the proceeds of a sale of a building
• D)The write-off of accounts receivable

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Definitions:

Closing Entries

Closing entries are journal entries made at the end of an accounting period to transfer temporary account balances to permanent accounts and prepare the company's books for the next period.

Dividends Account

An account used in bookkeeping that tracks dividends declared by a company to be paid out to its shareholders.

Temporary Account

An account used to collect balances over an accounting period that are then transferred to a permanent account.

Stockholders' Equity

The remaining interest in a company's assets after all liabilities are subtracted, indicating ownership.