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      Question

      Which of the following best represents a cash-flow from

      financing activities?
      A Cash paid to suppliers for inventory Correct Answer Incorrect Answer
      B Proceeds from sale of fixed assets Correct Answer Incorrect Answer
      C Proceeds from issue of long-term debt Correct Answer Incorrect Answer
      D Interest received on investments Correct Answer Incorrect Answer

      Solution

      Financing activities are transactions that change the size and composition of the owner's capital and borrowings of the entity. Proceeds from issuing long-term debt are a cash inflow from financing activities.

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