Cash Flows from Issuing and Repurchasing Stock or Issuing and Repaying

question 129

Multiple Choice

Cash flows from issuing and repurchasing stock or issuing and repaying (retiring) debt are classified as

• A)operating activities.
• B)investing activities.
• C)financing activities.
• D)borrowing activities.

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Definitions:

Fitness for a Particular Purpose

An implied warranty that goods will meet the specific needs of the buyer, as known by the seller at the time of purchase.

Merchant

A person or company involved in wholesale trade, especially one dealing with foreign countries or supplying merchandise to a particular trade.

Implied Warranty

An implied warranty is a legal assumption in sales that the goods sold meet certain quality and reliability standards, even if not expressly stated.

Express Warranty

A clearly stated promise or guarantee made by a seller that a product will meet certain standards of quality and reliability.