Which of the Following Is True Regarding the Statement of Cash

question 89

Multiple Choice

Which of the following is true regarding the statement of cash flows?

• A) Financing activities for corporations include lending money and buying shares.
• B) Investing activities involve collecting the necessary funds to operate the business.
• C) The purchase of equipment is an example of a financing activity.
• D) Revenues are increases in economic resources that result from a business's operating activities.

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Definitions:

Deposit

An upfront payment or security placed in trust or as a guarantee for the fulfillment of an obligation or purchase.

Majority

More than half of a particular group or amount; often referring to the greater part of a specific population or quantity.

Repudiated

Refers to the rejection or denial of a claim or contract.

Binding

Describes an agreement, contract, or decision that is legally enforceable, requiring parties involved to adhere to the terms set forth.