Which of the Following Is Reported as a Financing Activity

question 90

Multiple Choice

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

• A) The sale of securities classified as available for sale.
• B) The acquisition of stock for the purpose of retiring it.
• C) The payment of interest on bonds payable.
• D) The receipt of dividend revenue.

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Definitions:

Square Root

A value that, when multiplied by itself, gives the original number. It is often represented by the radical symbol \(\sqrt{}.\)

Simplify

The process of reducing an expression into its simplest form, making it easier to work with.

Simplify

To make something less complex or complicated, making it easier to understand or solve.

Radical

Refers to the root of a number, with the most common being the square root, though it can refer to cube roots or higher.