In a Statement of Cash Flows, Which of the Following

question 136

Multiple Choice

In a statement of cash flows, which of the following events would be classified as a financing activity?

• A) purchase of a trading security
• B) payment of interest on a loan
• C) payment of cash dividends to shareholders
• D) All of these answer choices are correct.

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Definitions:

Bowed-Out Shape

Describes a concave production possibilities frontier that reflects increasing opportunity costs as production of one good is increased.

Attainable And Unattainable

Describes whether a certain state or outcome can be achieved with the available resources (attainable) or not (unattainable), often used in the context of production and economics.

Prices Of Commodities

The current market values assigned to raw or primary products.

Efficient Use

The optimization of resource utilization to achieve maximum output or benefits with minimal waste or expense.