The Statement of Cash Flows Would Not Disclose the Effects

question 39

Multiple Choice

The statement of cash flows would not disclose the effects of:

• A)cash dividends declared and paid.
• B)issuance of preferred stock.
• C)a purchase and retirement of treasury stock.
• D)a 2-for-1 stock split.

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Definitions:

Sub-Prime Lending

Lending to individuals who have poor credit histories and are considered a higher risk to lenders.

Bank Charter

A legal document that authorizes the establishment and operation of a bank, setting out its rights and obligations.

Savings And Loan

A financial institution that specializes in accepting savings deposits and making mortgage and other loans.

FDIC

The Federal Deposit Insurance Corporation, a United States government agency that provides deposit insurance to depositors in US banks.