In a Statement of Cash Flows,payments to Acquire Debt Instruments

question 73

Multiple Choice

In a statement of cash flows,payments to acquire debt instruments of other entities would typically be classified as cash outflows for

• A) financing activities.
• B) equity activities.
• C) operating activities.
• D) investing activities.

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Definitions:

Excise Tax

A sales tax levied on a particular good or service; for example, gasoline and cigarette taxes.

Imported Good

A product or service brought into one country from another for use, sale, or consumption.

Comparative Advantage

Economic theory suggesting that a party should specialize in producing and trading goods that it can produce at a lower opportunity cost than others, leading to increased efficiency and profit.

Trading Partners

Countries or entities that engage in the exchange of goods and services through import and export activities.