Which of the Following Would Be Reported in the Investing

question 27

Multiple Choice

Which of the following would be reported in the investing activities section of a cash flow statement?

• A)Cash received from customers.
• B)Cash received from the issue of common stock.
• C)Cash paid to repay a bank loan.
• D)Cash paid to acquire common stock of another company.

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Definitions:

Permanent Differences

Differences between taxable income and accounting income that are not temporary and hence do not reverse over time.

Pretax Financial Income

The total earnings of a company before any taxes have been deducted.

Taxable Income

The amount of an individual's or corporation's income that is subject to income tax, after exemptions, deductions, and allowances are factored in.

Fraudulent Activity

Deliberate deception to secure unfair or unlawful gain, or to deprive a victim of a legal right.