Which of the Following Events Will Appear in the Cash

question 32

Multiple Choice

Which of the following events will appear in the cash flows from financing activities section of the statement of cash flows?

• A) Cash purchases of equipment.
• B) Cash purchases of bonds issued by another company.
• C) Cash received as repayment for funds loaned.
• D) Cash purchase of treasury stock.

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Definitions:

Federal Income Tax

The charge imposed by the IRS on the yearly income of individuals, corporations, trusts, and various legal bodies.

Discounted Note

A promissory note sold for less than its face value that will be worth its full value upon maturity.

Interest Calculations

The process of determining the interest amount payable or receivable over a certain period based on the principal sum and the rate of interest.

Journalize

The process of recording financial transactions in a company's journal before posting them to the general ledger.