Which of the Following Is the Primary Source of Cash

question 80

Multiple Choice

Which of the following is the primary source of cash over the life of a business?

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

Identify the role and importance of private property, competition, and freedom of enterprise in a market system.

Recognize the benefits of specialization and division of labor in enhancing productivity and economic efficiency.

Comprehend the economic functions of profits and losses in signaling resource reallocation.

Grasp the significance of property rights in facilitating economic transactions and encouraging innovation.

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Definitions:

Stock Dividend

A distribution of additional shares to shareholders at no extra cost, based on the number of shares they already own.

Corporation's Assets

Resources owned by a corporation that have economic value and can contribute to the company's future income and benefits.

Stockholders' Equity

The residual interest in the assets of a corporation that remains after deducting liabilities, representing ownership interest held by shareholders.

Small Stock Dividends

Dividends paid by a company to its shareholders in the form of additional shares, typically representing less than 20-25% of the existing shares’ total value.