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:

Compensatory Damages

Financial compensation awarded to a plaintiff to compensate for losses or injuries as a result of the defendant's actions.

Surety

A person who promises to perform the same obligation as another person (the principal) and who is jointly liable along with the principal for that obligation’s performance.

Exoneration

The act of being relieved from a responsibility, obligation, or hardship; often used in legal contexts to denote clearing from guilt or blame.

Artisans Liens

Legal claims granted to artisans or mechanics who have rendered services or provided materials, securing their right to payment.