On the Statement of Cash Flows, Which of the Following

question 86

Multiple Choice

On the statement of cash flows, which of the following items will affect both financing activities and operating activities?

• A) Issuance of equity securities.
• B) Collection of loans to other entities.
• C) Payment of dividends.
• D) Redemption of debt.

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Definitions:

Farm Subsidies

Financial aid and support programs provided by governments to help farmers reduce the risk of farming, ensuring a stable food supply.

Direct Payments

Cash transfers from governments to individuals or businesses for specific purposes, often used in agricultural subsidies or social welfare programs.

Agricultural Price Supports

Government interventions to stabilize or increase agricultural commodity prices through mechanisms such as subsidies, minimum price settings, or purchasing surplus.

Large-Scale Farmers

Farmers who operate extensive areas of land and generally engage in high-volume production of crops or livestock.