Which of the Following Transactions Has an Effect on the Statement

question 156

Multiple Choice

Which of the following transactions has an effect on the statement of cash flows?

• A)The sale of preferred stock
• B)The declaration of a cash dividend
• C)A small stock dividend
• D)A large stock dividend

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Definitions:

Simple Interest Rates

The rate at which interest is calculated solely on the initial amount of capital, without compounding.

Principal Investment

The original amount of money invested or loaned, on which basis interest and returns are calculated.

GIC

Stands for Guaranteed Investment Certificate, a secure investment that promises to return your principal plus interest.

Investment Savings

Funds set aside in financial instruments or accounts with the goal of generating income or profit over time.