Which of the Following Financing Activities Results in a Cash

question 167

Multiple Choice

Which of the following financing activities results in a cash inflow?

• A)Buying treasury stock
• B)Issuing bonds
• C)Repaying a bank loan
• D)Paying cash dividends

Recognize the effects of corporate organizational structure on decision-making and policy implementation.

Differentiate between the rights and limitations of common stockholders.

Determine the valuation and accounting for property and stock transactions.

Identify the taxation responsibilities of corporations and their implications.

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Definitions:

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within one year or within the normal operating cycle of the business, whichever is longer.

Accounts Receivable

Money owed a company by its clients or customers who have promised to pay for the products at a later date.

Commercial Paper

A written promise from one company to another to pay a specific amount of money.