Which of the Following Would Be Classified as a Financing

question 18

Multiple Choice

Which of the following would be classified as a financing activity on the statement of cash flows?

• A) Paying suppliers for inventory purchases.
• B) Interest paid to lenders.
• C) Lending money to another company.
• D) Repurchasing capital stock from owners.

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Definitions:

Marginal Product

Marginal product refers to the additional output that is generated by employing one more unit of a particular input, holding the quantities of other inputs constant.

Fertilizer

Materials, either natural or synthetic, applied to soils or directly to plants, to supply nutrients essential for growth.

Bushels

A unit of volume that is used primarily in the United States for quantifying the volume of agricultural commodities like grains.

Profit

The income earned when the total revenue from business activities is higher than the combined expenses, costs, and taxes necessary for those activities.