On a Statement of Cash Flows,cash Flows Are Grouped into the Following

question 13

Multiple Choice

On a Statement of Cash Flows,cash flows are grouped into the following three categories listed in the proper order:

• A)Operating activities,Investing activities,and Financing activities.
• B)Operating activities,Financing activities,and Investing activities.
• C)Investing activities,Operating activities,and Financing activities.
• D)Financing activities,Investing activities,and Operating activities.

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Definitions:

Dividends in Arrears

This term refers to dividends on preferred shares that have been declared but not yet paid to shareholders.

Stockholder Group

A Stockholder Group consists of individuals or entities that own shares of stock in a company, giving them certain rights, such as voting on corporate matters.

Cash Dividend

A distribution of a portion of a company's earnings, decided by the board of directors, paid to a class of its shareholders in cash.

Bond Liability

The obligation of the issuer of the bond to repay the principal amount along with interest to the bondholders on specified dates.