On the Statement of Cash Flows, the Cash Flows from Investing

question 150

Multiple Choice

On the statement of cash flows, the cash flows from investing activities section would include

• A) receipts from the issuance of common stock
• B) payments for dividends
• C) payments for retirement of bonds payable
• D) receipts from the sale of investments

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Definitions:

Revenue Account

An account that tracks the income earned from normal business operations, including sales of goods or services.

Income Statement

A financial document that shows a company's revenues, expenses, and net profit or loss over a specific period of time.

Balance Sheet

An official record presenting the total assets, liabilities, and net worth of shareholders of a firm at a fixed point in time.

Adjusting Journal Entry

Entries made in accounting records to update the balances of accounts before producing financial statements, ensuring they adhere to the accrual basis of accounting.