Which of the Following Is Reported as a Financing Activity

question 129

Multiple Choice

Which of the following is reported as a financing activity in the statement of cash flows?

• A)The amortization of a patent.
• B)The exchange of common stock for a building.
• C)The acquisition of long-term investments.
• D)The repayment of bonds issued at par.

Comprehend the obligations and liabilities of directors and shareholders under various circumstances, including insolvency and conflicts of interest.

Recognize the rights and remedies available to minority shareholders.

Identify the different types of corporations and their specific characteristics.

Interpret the legal implications of corporate actions and decisions, including asset sales and director conduct.

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Definitions:

Cash Receipts Journal

A specific type of journal used in accounting to record all cash inflows or receipts during a certain period.

Special Journals

Accounting journals designed for recording a specific type of transaction in a more efficient manner, such as sales or purchases, to simplify the accounting process.

Cash Sales

Transactions where goods or services are exchanged immediately for cash, without the extension of credit.

Account Sales

A detailed report provided by a consignee or an agent to the consignor detailing the sale of consigned goods, including prices obtained and associated costs.