Match These Terms with Their Correct Definition

question 140

Multiple Choice

Match these terms with their correct definition.
-provides several pieces of information needed to prepare the cash flow statement

• A)cash flow adequacy ratio
• B)cash flows from financing activities
• C)cash flows from investing activities
• D)cash flow from operating activities
• E)direct method
• F)free cash flow
• G)income statement
• H)indirect method
• I)noncash investing & financing activities
• J)statement of cash flows

---

Definitions:

Dividend

A portion of a company's earnings distributed to its shareholders.

Cumulative Preferred Stock

A type of preferred stock where dividends accumulate if not paid, and must be paid out before dividends to common stockholders.

Common Stock

Equity security representing ownership in a corporation, with rights to vote on corporate matters and receive dividends.

Dividend

A portion of a company's earnings distributed to its shareholders, typically on a regular basis.