On the Statement of Cash Flows,an Amount Paid for Utilities

question 93

Multiple Choice

On the statement of cash flows,an amount paid for utilities would be classified as

• A) a financing activity.
• B) an operating activity.
• C) an investing activity.
• D) a noncash activity.

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Definitions:

Uncovered Interest Parity

A financial theory stating that the difference in interest rates between two countries is equal to the expected change in exchange rates between those countries' currencies.

Forward Exchange Rate

The rate agreed upon for exchanging one currency for another at a future date.

Spot Exchange Rate

The immediate rate at which one can purchase or sell currency for on-the-spot delivery.

London Interbank Offer Rate

LIBOR; a benchmark interest rate at which major global banks lend to one another in the international interbank market for short-term loans.