Which of the Following Would Be Included in Cash Flows

question 20

Multiple Choice

Which of the following would be included in cash flows from investing activities?

• A)Cash proceeds from sales.
• B)Cash received from an issuance of bonds.
• C)Dividends paid to stockholders.
• D)Cash used to purchases of equipment.

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Definitions:

Present Value

The contemporary valuation of future monetary streams or a single sum, discounted at a chosen rate of interest.

Savings Accounts

Deposit accounts held at financial institutions that provide a modest interest rate, allowing individuals to save money securely.

Deposit

A sum of money placed with a financial institution for safekeeping or to earn interest, often used to secure a financial obligation or as part of a financial transaction.

Discount Rate

The interest rate used to discount future cash flows of a financial instrument to present value, reflecting the time value of money.