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:

Payroll Tax

Taxes imposed on employers or employees, and are usually calculated as a percentage of the salaries that employers pay their staff.

Unemployment Rate

The proportion of the workforce that is unemployed and actively seeking work.

Corporations

Legal entities that are separate and distinct from their owners, created to conduct business, can enter into contracts, loan and borrow money, sue and be sued.

Normative Economic Statement

An opinion or value judgment about what ought to be, rather than what is measurable or empirically observable.