Asked by

Tamara Custer
on Nov 02, 2024

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Which of the following items is classified as a 'financing activity' in the statement of cash flows?

A) cash received from accounts receivable.
B) cash payment to purchase debentures of another entity.
C) cash payment on redemption of the company's debentures.
D) payment of dividends through a dividend reinvestment scheme.

Financing Activity

Transactions and events where cash is raised from creditors and investors to fund the company’s operations and expansions.

Statement of Cash Flows

A financial statement that shows how changes in balance sheet accounts and income affect cash and cash equivalents, dividing activities into operating, investing, and financing activities.

Dividend Reinvestment Scheme

A plan offered by a corporation that allows investors to reinvest their cash dividends by purchasing additional shares or fractional shares on the dividend payment date.

  • Acknowledge and sort cash flows relevant to financing operations.
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SJ
Salama JasemNov 02, 2024
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