In a statement of cash flows, which of the following events would be classified as a financing activity?

A) purchase of a trading security
B) payment of interest on a loan
C) payment of cash dividends to shareholders
D) All of these answer choices are correct.


C

Business

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______ refers to whether a theory is presented with simplicity--the fewest statements possible.

A. Acuity B. Consistency C. Practicality D. Succinctness

Business

Pac-Coast Insurance (PCI) concentrates its underwriting activities in California. The company is concerned that if a catastrophic earthquake occurs, it might threaten the solvency of the company

To address this risk, PCI issued some debt securities. If a catastrophic earthquake occurs, PCI does not have to repay the full amount borrowed or pay interest. The securities PCI issued are called A) catastrophe futures contracts. B) interest rate swaps. C) catastrophe bonds. D) contingent options contracts.

Business

In preparing a company's statement of cash flows for the most recent year, Ransom Corp. reported the following information:   Repayment of outstanding bonds$107,000Purchase of treasury stock 62,000Issuance of common stock 46,000Payment of cash dividends 15,000Net cash flows from financing activities for the year were:

A. $138,000 of net cash used. B. $138,000 of net cash provided. C. $230,000 of net cash used. D. $108,000 of net cash used. E. $230,000 of net cash provided.

Business

Assuming the acquisition price of Company S includes some differences between market and book values of depreciable assets, differences arise between the complete equity method and the partial equity method in how the accounts of the parent reflect:

A.) dividends b) income c) retained earnings d) both b and c

Business