Cash Flows from Acquiring and Selling Products Are Classified as

question 191

Multiple Choice

Cash flows from acquiring and selling products are classified as

• A)operating activities.
• B)investing activities.
• C)financing activities.
• D)distribution activities.

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Definitions:

Par Value

The nominal or face value of a stock or bond, as stated by the issuing company.

Dividends

The allocation of a corporation's earnings to its shareholders, in the form of monetary distributions.

Retained Earnings

The portion of a company's profits that are kept or retained within the company to reinvest in the business or pay down debt, rather than distributed to shareholders as dividends.

Tax Liability

The total amount of tax owed to the tax authorities by an individual, organization, or corporation in a given period.