USGAAP Classifies All of the Following as Financing Activities on the Statement

question 43

Multiple Choice

U.S.GAAP classifies all of the following as financing activities on the statement of cash flows except

• A)cash inflows from issuance of bonds.
• B)cash inflows from selling capital stock of the entity.
• C)cash outflows to lender for interest.
• D)cash outflows to repurchase capital stock of the entity.
• E)cash outflows to repurchase bonds of the entity.

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Definitions:

Cash Account

An account where all transactions are made in cash, including receipts and payments.

Bank Reconciliation

Bank reconciliation is the process of matching the balances in an entity's accounting records for a cash account to the corresponding information on a bank statement, to ensure accuracy.

Internal Control

Strategies and methods adopted by a business to maintain the accuracy of its financial and accounting records, encourage responsibility, and deter dishonest practices.

Detection of Errors

The process of identifying and correcting mistakes in financial records or transactions.