Which of the Following Cash Flows Results from a Financing

question 119

Multiple Choice

Which of the following cash flows results from a financing activity?

• A)Receiving dividends on investment in another company
• B)Repaying long-term debt
• C)Purchasing an investment in another company
• D)Receiving payment from a customer

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Definitions:

Price Ceiling

A government-imposed limit on how high a price can be charged for a product or service.

Producer Surplus

The variation between the price that sellers expect to receive for a product or service and the actual price they end up getting.

Consumer Surplus

The difference between the maximum amount that consumers are willing to pay for a good or service and the amount they actually pay.

Consumer Surplus

The benefit obtained by consumers because they are able to purchase a product for a price that is less than the maximum price that they are willing to pay.