Choose the Combination That Best Reflects the Appropriate Classification of Cash

question 90

Multiple Choice

Choose the combination that best reflects the appropriate classification of cash paid for operating,investing,and financing activities. $$\begin{array}{l}\text { Cash paid for: }\\\begin{array} { l l l l } & \text { Operating } & \text { Investing } & \text { Financing } \\\text { A) } & \text { Cash to suppliers } & \text { Interest } & \text { Dividends } \\\text { B) } & \text { Interest } & \text { Cash to suppliers } & \text { Income taxes } \\\text { C) } & \text { Income taxes } & \text { Investment securities } & \text { Dividends } \\\text { D) } & \text { Dividends } & \text { Income taxes } & \text { Cash to suppliers }\end{array}\end{array}$$

• A)Choice A
• B)Choice B
• C)Choice C
• D)Choice D

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Definitions:

Annual Rate

Annual rate typically refers to the interest rate for a loan or investment calculated on an annual basis, providing a basis for comparison with other financial products.

Interest

The charge for borrowing money, usually expressed as a percentage of the amount borrowed.

Future Value

The estimated worth of an investment or amount of money at a specific future date, taking into account factors like interest rates or investment growth.

Annuity

A financial product that pays out a fixed stream of payments to an individual, typically used as part of a retirement strategy.