Which of the Following Items Would Appear in the Financing

question 96

Multiple Choice

Which of the following items would appear in the financing activities section of a statement of cash flows?

• A) received cash revenue from customers
• B) paid cash for dividends
• C) purchased equipment for cash
• D) paid cash for utility bill

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Definitions:

Stockholders' Equity

The residual interest in the assets of an entity that remains after deducting its liabilities, representing owners' claims against the company's assets.

Dividends Policy

A company's strategy or guidelines governing the amount and timing of dividend payments to its shareholders.

Stock Dividends

A form of dividend payment made by a corporation to its shareholders in the form of additional shares, rather than cash, based on the portion of shares already held.

Unlimited Liability

A legal structure in which business owners are personally responsible for all the debts of the business.