Cash Flows from Investing Activities Would Be Decreased by Which

question 37

Multiple Choice

Cash flows from investing activities would be decreased by which of the following?

• A) Issuance of bonds
• B) Issuance of common stock
• C) Purchase of long-term investments
• D) Payment of dividends

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Definitions:

Expected-Rate-Of-Return

The predicted amount of gain or loss an investment is expected to generate, expressed as a percentage.

Interest-Rate Cost-Of-Funds

The expense associated with borrowing funds, measured by the interest rate that banks or other financial institutions charge for the use of their money.

Interest-Rate Cost

The cost incurred by an individual or entity due to the interest rate applied on borrowed funds, influencing how much is paid back in interest over the loan period.

One-Time Added Profit

A temporary increase in earnings that a company experiences from a singular event or transaction, not expected to recur in the normal course of business.