Use the Following Major Cash Flow Activities to Classify the Activities

question 144

Multiple Choice

Use the following major cash flow activities to classify the activities listed below:
-Issued long-term debt

• A)Operating Activity, Source of Cash
• B)Operating Activity, Use of Cash
• C)Investing Activity, Source of Cash
• D)Investing Activity, Use of Cash
• E)Financing Activity, Source of Cash
• F)Financing Activity, Use of Cash
• G)Non-cash Investing & Financing Activity

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Definitions:

Investment Projects

Initiatives undertaken by businesses or individuals involving the allocation of resources with the expectation of future returns.

Cash Outflows

Money spent or costs incurred by a business or individual, resulting in a decrease in cash reserves.

Straight-Line Depreciation

A manner for spreading out the cost of a tangible asset across its useful life in regular yearly installments.

Income Taxes

Income taxes are taxes imposed by governments on the income generated by businesses and individuals within their jurisdiction.