Which of the Following Describes the Financing Activities Section of the Statement

question 163

Multiple Choice

Which of the following describes the financing activities section of the statement of cash flows?

• A)It includes increases and decreases in long-term assets.
• B)It includes cash inflows and outflows involved in long-term liabilities and equity.
• C)It includes interest and dividend income and cash payments for interest expense.
• D)It reports on activities that create revenue or expenses for the entity's business.

---

Definitions:

Strike Price

The predetermined price at which the holder of an option can buy (call) or sell (put) the underlying asset, until the option expires.

Call Contract

A financial agreement giving the buyer the right, but not the obligation, to buy a stock, bond, commodity, or other asset at a specific price within a specific time period.

Ticker Symbol

A unique series of letters assigned to a security for trading purposes.

CBOE Option Contract

A contract that gives the holder the right to buy or sell a specific quantity of a security at a specified price on or before a certain date, traded on the Chicago Board Options Exchange.