Which of the Following Would Not Be a Cash Flow

question 34

Multiple Choice

Which of the following would not be a cash flow from financing activities?

• A)Borrowing on a long-term note payable
• B)Repayment of principal on bonds payable
• C)Payment of interest on bonds payable
• D)Payment of a cash dividend

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Definitions:

Instrument Value

The actual worth or significance of a financial document, like a stock or bond, in transactions.

Maker

The party in a financial transaction who creates or signs a promissory note, thereby agreeing to pay the note's value to a specified party.

Drawer

The person who writes or signs a bill of exchange, such as a check, thus creating a financial obligation.

Sight Draft

A financial instrument that is payable on presentation or sight to the drawer.