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

question 74

Multiple Choice

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

• A) receipts from the issuance of capital stock
• B) payment for interest on short-term notes payable
• C) payments for the purchase of investments
• D) payments for cash dividends

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Definitions:

Preferred Stock

A class of ownership in a corporation that has a higher claim on assets and earnings than common stock, often receiving dividends before common shareholders.

Treasury Stock

Shares that were issued and subsequently repurchased by the issuing company, reducing the amount of outstanding stock on the open market.

Financial Statements

Reports that provide an overview of a company's financial condition, including balance sheet, income statement, and cash flow statement.

Paid-In Capital

Funds raised by a company through the sale of its own shares.