Which of the Following Is Considered a Part of Cash

question 39

Multiple Choice

Which of the following is considered a part of cash flow from a financing activity in a statement of cash flow?

• A) Increase in corporate bonds
• B) Decrease in accrued wages
• C) Increase in inventories
• D) Decrease in accounts payable
• E) Increase in fixed assets

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Definitions:

Financing Activities

Transactions related to raising funds or repaying borrowed funds, as reported in the statement of cash flows.

Financing Activities

Transactions a company undertakes to fund its operations and expansions, such as issuing equity or taking on loans.

Indirect Method

A way of calculating cash flows from operating activities by starting with net income and adjusting for changes in non-cash accounts.

Cash Flows

The total amount of money being transferred into and out of a business, particularly affecting liquidity, investment, and operating activities.