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    Question

    In the context of cash flow statements, which of the

    following is considered a financing activity?
    A Payment of salaries Correct Answer Incorrect Answer
    B Purchase of raw materials Correct Answer Incorrect Answer
    C Repayment of long-term debt Correct Answer Incorrect Answer
    D Payment of taxes Correct Answer Incorrect Answer
    E Interest received on deposits Correct Answer Incorrect Answer

    Solution

    Financing activities relate to raising or repaying capital, including issuing shares, borrowing, or repaying long-term loans.

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