Which of the Following Transactions Is Not Included in Financing

question 16

Multiple Choice

Which of the following transactions is not included in financing activities in the statement of cash flows?

• A) Receipt of repayment of loans and advances.
• B) Proceeds from issuing shares.
• C) Repayment of shares.
• D) Repayment of debts.

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Definitions:

APR

Annual Percentage Rate; the annual rate charged for borrowing or earned through an investment, accounting for fees and compound interest.

APR Discount Rate

The annual percentage rate that represents the actual yearly cost of funds over the term of a loan, including any fees or additional costs associated with the transaction.

Monthly Payments

Regular payments made over a specified period of time towards the settlement of a debt obligation, typically calculated on an amortization schedule.

Compounding Frequency

Compounding frequency refers to the number of times per year that earned interest is added to the principal balance of an investment, affecting the total interest earned over time.