Which Statement Is True

question 23

Multiple Choice

Which statement is true?

• A)Stock splits and dividends are non-cash transactions. They are not recorded on the SCF.
• B)Cash flows from the purchase and sale of treasury shares are reported as an investing activity.
• C)OCI is normally reported in the financing section of the SCF.
• D)Cash flows from discontinued operations would never be reported in the investing section of the SCF regardless of their nature.

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Definitions:

Unemployment Rate

The segment of the labor force currently without employment but making efforts to find work.

Inflation Rate

The percentage increase in the general level of prices for goods and services in an economy over a period of time.

Aggregate Supply

The aggregate amount of products and services created in an economy at a specific price level during a particular time frame.

Adverse Supply Shock

An unexpected event that suddenly decreases the supply of a product or service, resulting in increased prices and reduced quantity.