Analysis of the Financing Activities Section of the Statement of Cash

question 127

Multiple Choice

Analysis of the financing activities section of the statement of cash flows will disclose

• A)the extent of investments in plant and equipment.
• B)net income for the period.
• C)purchases and sales of treasury stock.
• D)the amount of money loaned to others.

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Definitions:

Gain

An increase in the value of an investment or asset.

Donor's Adjusted Basis

The value used for tax purposes to determine the gain or loss when property is given as a gift, generally the cost basis of the donor at the time of the gift.

Fair Market Value

The price that property would sell for on the open market, between a willing buyer and a willing seller each having reasonable knowledge of all pertinent facts.

Gift

A transfer of property or assets from one individual to another without the expectation of payment or anything in return.