Where Would Cash Received from the Sale of Stock Appear

question 8

Multiple Choice

Where would cash received from the sale of stock appear on the statement of cash flows?

• A)In the operating activity section
• B)In the non-cash financing activity section
• C)In the investing activity section
• D)In the financing activity section

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Definitions:

Creditors

Individuals or institutions that lend money or extend credit to others, expecting to be repaid, usually with interest.

Farmers

Individuals engaged in agriculture, aiming at producing food and other crops, raising livestock, and managing farm operations.

Railroad Lines

These are networks of tracks along which trains travel, essential for the transportation of goods and passengers over land.

Unprofitably Low Rates

Pricing levels that are so low they do not generate enough revenue to cover costs, leading to financial losses.