In a Statement of Cash Flows, Which of the Following

question 39

Multiple Choice

In a statement of cash flows, which of the following events would be classified as a financing activity?

• A) purchase of a trading security
• B) payment of interest on a loan
• C) payment of cash dividends to shareholders
• D) all of these

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Definitions:

Shortage

A condition where there's more market demand for a product or service than what is supplied.

Equilibrium Price

The rate at which the volume of goods available meets the volume of goods sought.

Surpluses

The amount by which supply exceeds demand, often referring to goods, services or public finances.

Shortages

A situation where the demand for a product or service exceeds the supply available at a specific price.