An Example of a Cash Inflow from Financing Activities Is

question 98

Multiple Choice

An example of a cash inflow from financing activities is:

• A) collecting money owed by customers.
• B) issuing preferred shares.
• C) selling a piece of equipment.
• D) paying off a bond.
• E) an increase in accounts payable.

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Definitions:

Net Operating Income

This is the total profit of a company after operating expenses are subtracted from operating revenues but before income from investments and taxes are considered.

Operating Loss

The loss incurred when a company's operating expenses exceed its revenues, indicating that its core business operations are not profitable.

Year 1

Refers to the first year in a given context, often used in financial projections, company performance analysis, or product lifecycle evaluation.

Absorption Costing

This accounting approach involves including every manufacturing expense, such as direct materials, direct labor, and both fixed and variable overheads, in the product's final price.