Trident Corporation Had the Following Cash Flows in the Current

question 75

Multiple Choice

Trident Corporation had the following cash flows in the current year. Which of the following will be categorized under the financing activities section of the statement of cash flows?

• A) Rent on a warehouse amounting to $1.1 million
• B) Purchase of $125,000 worth of five-year bonds issued by Towson Utilities
• C) Preferred dividends of $330,000 paid to shareholders
• D) Lease income received on a piece of land

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Definitions:

Actuarially Assumed

Actuarially assumed involves estimations or calculations made based on actuarial methods, often related to insurance or pensions, to predict future obligations or costs.

Defined Contribution Pension Plan

A retirement plan where an employer, employee or both make contributions, with future benefits dependent on investment performance.

IRS Approved

Indicates that a financial arrangement or practice has been sanctioned or recognized by the Internal Revenue Service.

Defined Benefit Pension Plan

A retirement plan where employee benefits are calculated on a formula including salary history and duration of employment, with the employer bearing investment risk.