Which of the Following Refers to Money That Is Provided

question 41

Multiple Choice

Which of the following refers to money that is provided by a potential purchaser and applied toward the purchase price of property if the sale goes through,but could be forfeited if the buyer changes his or her mind?

• A)Guaranteed funds
• B)Good faith money
• C)Earnest money
• D)Proof money
• E)A down payment

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Definitions:

Financing Activities

Transactions related to raising capital and repaying investors, included within the cash flow statement.

Creditors

Individuals or institutions that lend money or extend credit, and to whom an entity owes money.

Long-Term Debt

Financial obligations of a business or an individual that are due more than one year in the future.

Statement Of Cash Flows

A financial statement showing the inflows and outflows of cash and cash equivalents over a specific period, categorizing them into operating, investing, and financing activities.