When Cash Is Paid to Suppliers on Account, Which Section

question 19

Multiple Choice

When cash is paid to suppliers on account, which section of the Statement of Cash Flows is affected?

• A) Cash Flow from Operating Activities.
• B) Cash Flow from Investing Activities.
• C) Cash Flow from Financing Activities
• D) There is no effect on the Statement of Cash Flows.

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Definitions:

Earnings Per Share

A financial metric that measures the amount of a company's profit attributable to each outstanding share of common stock, calculated as net income divided by the number of outstanding shares.

Shares Of Stock

Equal units of ownership in a corporation, representing a claim on part of the corporation’s assets and earnings.

Net Capital Spending

The total expenditure on fixed assets minus any sales of fixed assets, reflecting a company's investment in its physical assets.

Dividends Per Share

A measure of the dividend payment a shareholder receives for each share of stock held, calculated as the total dividends paid divided by the total number of shares.