Which of the Following Would Be Included in Calculating Net

question 49

Multiple Choice

Which of the following would be included in calculating net cash flows from financing activities?

• A)Cash proceeds from sales.
• B)Cash received from an issuance of bonds.
• C)Dividends received from investments.
• D)Cash used for purchases of equipment.

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Definitions:

Inflation Rate

The percentage increase in the general level of prices for goods and services over a certain period, reflecting the decreasing purchasing power of money.

Rational Person

An individual who systematically and logically evaluates options to make decisions that maximize their personal benefit or utility.

Present Value

The present worth of a sum of money or series of cash flows anticipated in the future, calculated using a certain rate of return.

Consumption Plan

An outline of how individuals or households intend to allocate their income towards consumption goods and services over a period.