Which of the Following Will Be Shown Under the Investing

question 54

Multiple Choice

Which of the following will be shown under the investing activities section of the statement of cash flows?

• A) purchased treasury stock for cash
• B) issued notes payable to purchase equipment
• C) paid cash dividends to stockholders
• D) loaned money to a third party

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Definitions:

Fixed Monthly Expenses

Expenses that do not change in total regardless of the level of activity, production, or sales within a given month.

Net Operating Income

A company's income after operating expenses are subtracted from its operating revenues.

Contribution Margin Ratio

The percentage of sales revenue that exceeds variable costs, indicating how much revenue contributes to fixed costs and profits.

Fixed Monthly Expenses

Regular expenses that do not fluctuate in amount from month to month, such as mortgage or lease payments.