Which of the Following Activities Is Not Reported as a Financing

question 83

Multiple Choice

Which of the following activities is not reported as a financing activity on the statement of cash flows?

• A)Borrowing from a bank
• B)Paying interest on a long-term note payable
• C)Repaying the principal on a loan
• D)Issuing common stock for cash

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Definitions:

Nature Of The Business

Describes the fundamental operations and activities in which a business is engaged.

Allocation Of Losses

The process by which losses are distributed among various parties, such as insurance companies or individuals, often according to a pre-determined formula or agreement.

Judicial Determination

A decision made by a court or a judge regarding the outcome of a legal matter.

Capital Contribution

The act of providing assets or funds to a partnership or company by its owners or partners to support its operations or start-up.