Which One of the Following Transactions Should Be Classified as a Financing

question 144

Multiple Choice

Which one of the following transactions should be classified as a financing activity on the statement of cash flows?

• A) Purchase of equipment.
• B) Purchase of the company's own stock.
• C) Sale of a long-term investment.
• D) Payment of interest to a lender.

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Definitions:

Super Wi-Fi

A wireless networking proposal that uses white space spectrum to provide internet access to large areas, far surpassing traditional Wi-Fi's range limitations.

M-commerce

Mobile commerce, or the buying and selling of goods and services through wireless handheld devices such as smartphones and tablets.

Publicly

In a manner that is open and accessible to all, often referring to actions or statements made in full view of the general public.

Throughput

The rate at which a system generates its product or service, measured over a specific period of time.