Which of the Following Would Be Classified as a Financing

question 106

Multiple Choice

Which of the following would be classified as a financing activity on a statement of cash flows?

• A) Declaration and distribution of a stock dividend
• B) Deposit to a bond sinking fund
• C) Sale of a loan receivable
• D) Payment of interest to a creditor

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Definitions:

Aggregate Supply

Aggregate supply is the total supply of goods and services that firms in a national economy plan on selling during a specific time period, under a given price level.

Aggregate Production

The total amount of goods and services produced within an economy at a given overall price level in a given period.

Aggregate Purchases

The total amount spent by consumers, businesses, and the government on goods and services within a particular period.

Unintended Inventory Investment

Occurs when a business accumulates more inventory than planned due to unexpected changes in demand or production levels.