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:

Voluntary Deductions

These are payroll deductions that an employee chooses to have withheld from their paycheck, such as for retirement plans, health insurance, or union dues.

Health Insurance

Health insurance is a form of insurance coverage that typically pays for medical, surgical, prescription drug, and sometimes dental expenses incurred by the insured.

Retirement Plan

A financial arrangement designed to replace employment income upon retirement, often including contributions from both the employer and employee.

Federal Income Taxes

Taxes levied by the federal government on the annual income of individuals, corporations, trusts, and other legal entities.