Which of the Following Should Be Shown on a Statement

question 153

Multiple Choice

Which of the following should be shown on a statement of cash flows under the financing activities section?

• A) the purchase of a long-term investment in the common stock of another company
• B) the payment of cash to retire a long-term note
• C) the proceeds from the sale of a building
• D) the issuance of a long-term note to acquire land

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Definitions:

Create Money

The process by which central banks or monetary authorities increase the money supply.

Deposit Account

A deposit account is a bank account that allows the holder to deposit and withdraw money, often earning interest, including savings accounts, checking accounts, and other transaction accounts.

Liabilities

Financial obligations or debts that a company or individual owes to others, which must be paid back in the future.

Government Securities

Financial instruments issued by the government to borrow money from the public.