Which of the Following Financial Statements Shows a Firm's Financing

question 103

Multiple Choice

Which of the following financial statements shows a firm's financing activities (how funds were generated) and investment activities (how funds were used) over a particular period of time?

• A)Balance sheet
• B)Income statement
• C)Statement of retained earnings
• D)Statement of cash flows
• E)Proxy statement

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Definitions:

Compounded Semi-annually

A method of calculating interest in which the interest is added to the principal sum twice a year.

Savings

Money that is set aside or stored for future use or emergencies, rather than spent immediately.

Invested

The act of allocating money or capital to an endeavor with the expectation of obtaining an additional income or profit.

Annuity

An annuity is a financial product that pays out a fixed stream of payments to an individual, typically used as an income stream for retirees.