Items Classified as 'Financing Activities' on an Entity's Statement of Cash

question 27

Multiple Choice

Items classified as 'financing activities' on an entity's Statement of Cash Flows are usually associated with:

• A) movements in non-current liabilities and equity;
• B) sales of goods and services by the entity;
• C) disposal of non-current assets;
• D) purchase of shares by the entity.

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Definitions:

Business Site

The physical location or online presence where a company conducts its operations or business activities.

Fixed Asset Turnover Ratio

A financial metric that shows how efficiently a company uses its fixed assets to generate sales, calculated by dividing net sales by average net fixed assets.

Labor Intensive

Describes production processes or industries that require a large amount of labor relative to capital to produce goods or services.

Fixed Asset Investments

Long-term investments in tangible assets such as property, plant, and equipment, intended for use in operations.