Which of the Following Would Be Classified as a Financing

question 169

Multiple Choice

Which of the following would be classified as a financing activity on the statement of cash flows?

• A)Cash receipts from accounts receivable collections.
• B)Cash receipts from sale of equipment.
• C)Cash paid to purchase treasury stock.
• D)Cash paid for interest on notes payable.

---

Definitions:

Positive Linear Relationship

A relationship between two variables where increases in the value of one variable are associated with increases in the value of the other variable.

Curvilinear Relationship

A relationship between two variables where the change in one variable is not constant with respect to the change in another.

Nonlinear Relationship

A relationship between variables where the change in one variable does not result in a proportional change in the other variable.

Nonmonotonic

A description of relationships where the direction of change is not consistent across the range of variables.