Which of the Following Should Be Shown on a Statement

question 133

Multiple Choice

Which of the following should be shown on a statement of cash flows under the financing activity section?

• A) The purchase of a long-term investment in the common stock of another company
• B) The payment of cash to retire a long-term note
• C) The proceeds from the sale of a building
• D) The issuance of a long-term note to acquire land

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Definitions:

Assignment

The act of passing on rights, property, or duties from one individual or group to another.

Creditor Beneficiary

A third party who benefits from a contract made between two other parties because one of the primary parties owes a debt to the beneficiary.

Contract

A legally enforceable agreement between two or more parties that creates mutual obligations.

Promisor

The person or party who makes a promise or agrees to perform an action or fulfill an obligation under a contract.