A List of Sources and Uses of Cash Are Given

question 123

Multiple Choice

A list of sources and uses of cash are given below. Select on the line provided whether each is an operating, investing, or financing activity.
-dividends paid

• A)operating
• B)investing
• C)financing activity.

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Definitions:

Liquidity Ratio

A financial metric used to determine an entity's ability to pay off its short-term debts with its most liquid assets, indicating financial health.

Current Ratio

A financial metric indicating a firm's capacity to meet its immediate financial liabilities with its present assets.

Net Cash

The amount of cash available after deducting liabilities, often considered in evaluating a company's liquidity.

Equity

represents ownership interest in a company or property, often manifested as stock or shares, indicating a stake in the company's assets and profits.