On the Statement of Cash Flows, the Cash Received from Selling

question 25

Multiple Choice

On the statement of cash flows, the cash received from selling available-for-sale securities is shown as a(n) :

• A)decrease in investing activities.
• B)increase in financing activities.
• C)decrease in financing activities.
• D)increase in investing activities.

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Definitions:

Marginal Cost Curves

Graphical representations that show how the cost of producing one additional unit of a good varies as the quantity of output produced changes.

Profit Maximizers

Refers to firms or individuals who alter their production or operational levels to achieve the highest possible profit margins.

Lump Sum Subsidy

A fixed amount of money provided by the government or a body to support a business or market, which does not change with the level of output.

Per-Unit Subsidy

A financial incentive given by the government, reducing the cost of each unit of a good or service to either the producer or consumer.