Which of the Following Activity Sections on the Statement of Cash

question 172

Multiple Choice

Which of the following activity sections on the statement of cash flows would include the acquisition of a building by issuing common stock?

• A)Investing section
• B)Financing section
• C)Operating section
• D)None of the above

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Definitions:

Debt Ratio

A financial ratio that measures the extent of a company's or individual's leverage, calculated by dividing total liabilities by total assets.

Micro-aging Schedule

A detailed plan or method for categorizing accounts receivable based on the age of the invoice, typically used to manage and prioritize collections.

Cash Budget

A financial plan that estimates incoming and outgoing cash flows over a specific period, helping businesses manage liquidity and cash reserves.

Income Statement

A financial statement that reports a company's financial performance over a specific accounting period, detailing revenues, expenses, and profits or losses.