Which of the Following Is True

question 118

Multiple Choice

Which of the following is true?

• A) The sale of stock to stockholders is an investing activity.
• B) The repurchase of stock from stockholders is an investing activity.
• C) The declaration of stock dividends is a financing activity.
• D) The payment of cash dividends is a financing activity.

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Definitions:

Rescind

To cancel, revoke, or repeal a contract, agreement, or resolution, often due to the discovery of some error or misrepresentation.

Purchase and Sale

The legal process of buying and selling goods or property, involving the transfer of ownership from the seller to the buyer.

Legal Right

A privilege or entitlement under the law that allows an individual or entity to perform or refrain from performing certain actions.

Ownership

The state or fact of having legal control and rights over property, which could be tangible or intangible.