In a Statement of Cash Flows, Which of the Following

question 8

Multiple Choice

In a statement of cash flows, which of the following would be reported in the cash flows from investing activities section?

• A) issuance of common shares in exchange for a factory building
• B) stock dividends received
• C) development costs incurred (intangible asset)
• D) declaration of cash dividends

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Definitions:

Protective Tariffs

Tariffs imposed by a government to protect domestic industries from foreign competition by raising the price of imported goods.

Standard Of Living

The level of wealth, comfort, material goods, and necessities available to a person, group, or society.

Comparative Advantage

Comparative advantage is the ability of an individual, company, or country to produce a good or service at a lower opportunity cost than competitors.

Tariff

A tax imposed by a government on goods and services imported from other countries, to regulate trade and protect domestic industries.