Which of the Following Is Reported as a Financing Activity

question 145

Multiple Choice

Which of the following is reported as a financing activity on the statement of cash flows?

• A)Declaration of dividends
• B)Sale of preferred stock
• C)Conversion of preferred stock to common stock
• D)Stock split

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Definitions:

Reduce Output

A decision or strategy to decrease the quantity of goods or services produced by a company or economy.

Increase Output

To raise the quantity of goods or services produced within a given time period.

Pure Monopoly

A market structure where a single firm is the sole producer and seller of a product or service, with no close substitutes available.

Profit-Maximizing Outputs

The level of production at which a company can achieve the highest possible profit.