Which of the Following Is a Transfer Payment

question 155

Multiple Choice

Which of the following is a transfer payment?

• A)Work-study students receive wages transferred from the university budget.
• B)A company pays the moving expenses for a transferred employee.
• C)A student transfers to another college and receives a tuition rebate.
• D)A student receives a tuition grant from the federal government.

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Definitions:

Financing Activity

Transactions involving the exchange of financial instruments, typically related to the borrowing, repaying, or raising of capital for a company.

Cash Inflow

The total amount of money being transferred into a business, typically from operational, investment, and financing activities.

Treasury Stock

Shares that were issued and subsequently repurchased by the company, reducing the amount of outstanding stock on the open market.

Investing Activity

Transactions involving the purchase or sale of long-term assets and other investments, not including cash equivalents, reported in the cash flow statement.