The Purchase of Long-Term Investments Would Appear on a Cash

question 79

Multiple Choice

The purchase of long-term investments would appear on a cash flow statement in the:

• A) operating activities section
• B) investing activities section
• C) financing activities section
• D) would not appear on a cash flow statement

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Definitions:

Retirement Savings Contributions Credit

A tax credit also known as the "Saver's Credit," aimed at encouraging low- and moderate-income individuals to make retirement contributions.

Head of Household

A filing status for individual US taxpayers who are unmarried and pay more than half the cost of keeping up a home for themselves and a qualifying person.

American Opportunity Tax Credit

An allowance for authorized costs of education paid on behalf of a qualifying individual in the first four years of college or university.

Credit Phase-Out

A gradual reduction in the amount of a tax credit as a taxpayer's income surpasses certain threshold levels, until the credit is reduced to zero.