Which One of the Following Transactions Should Be Classified as a Financing

question 144

Multiple Choice

Which one of the following transactions should be classified as a financing activity on the statement of cash flows?

• A) Purchase of equipment.
• B) Purchase of the company's own stock.
• C) Sale of a long-term investment.
• D) Payment of interest to a lender.

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Definitions:

Intravenous Line

A medical device used to administer medication, fluids, and nutrients directly into a vein.

Sterile Gloves

Gloves that have been treated to eliminate all forms of microbial life and are used in medical procedures to maintain a sterile environment.

Protective Apparel

Protective apparel refers to clothing and gear designed to safeguard individuals from physical, chemical, and biological hazards.

Gloves

Hand coverings made from various materials used to protect against environmental hazards, contamination, or to prevent disease transmission.