In a Statement of Cash Flows,the Sale of a Long-Term

question 81

Multiple Choice

In a statement of cash flows,the sale of a long-term investment would ordinarily be classified as:

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

Comprehend the critical findings and evidence supporting contingency theories.

Understand the importance and methods of reflective analysis and planning for leaders.

Understand the concept of hedging and its application in financial management.

Comprehend the investment strategies and risk management practices of different financial institutions.

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Definitions:

Retained Earnings

The portion of net income left over for the business after it has paid out dividends to its shareholders, which is reinvested in the business.

Annual Revenues

The total amount of money received by a company for goods sold or services provided during a fiscal year.

Net Income

The concluding profit figure for a company, arrived at by deducting every type of expense and tax from its complete revenue.

Accumulated Depreciation

The total amount of a tangible asset's cost that has been allocated as depreciation expense since it was put into use, reflecting usage or wear and tear.