Which of the Following Will Be Categorized as a Financing

question 111

Multiple Choice

Which of the following will be categorized as a financing activity on the statement of cash flows?

• A) Cash received by selling old equipment
• B) Cash paid for purchase of new machinery
• C) Cash paid for rent
• D) Cash received from issuance of shares of common stock

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Definitions:

Cognitive Dissonance

The mental discomfort experienced by an individual who holds two or more contradictory beliefs, ideas, or values.

Fundamental Attribution Error

The tendency to overemphasize personality-based explanations for behaviors observed in others while underemphasizing the role of situational factors.

Defensive Attribution

A psychological process by which individuals tend to ascribe greater blame to the victims of misfortune for their own victimization when they feel threatened by the likelihood of a similar event happening to them.

Observational Learning

A learning process through which behaviors, attitudes, or skills are acquired by watching and imitating the actions of others.