Sale of investment securities is an investing cash flow and transactions involving debt, equity, and dividends is a financing cash flow, as reported in the Statement of Cash Flows.
Investing activities include purchases of investments in securities, purchase of physical assets or sale of securities or assets.
Cash flow from financing activities is a section of a company’s cash flow statement, which shows the net flows of cash that are used to fund the company.
Sale of investment securities comes in investing activities and debt, equity, dividends that are used to fund the company comes under financing activities.
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Answer:
Alphabet stock; Acme Investing; New York Stock Exchange.
Explanation:
Susie buys a share of Alphabet stock through her broker, Mr. Diaz, who works for Acme Investing and purchases the stock at the New York Stock Exchange. In this transaction, Alphabet stock is a financial instrument, Acme Investing is a financial institution, and New York Stock Exchange represents a financial market.
Financial instruments can be defined as assets which are having monetary value or used to record a monetary transaction. Financial instruments are generally classified on the basis of their risks, maturity, issuers etc. Some examples of financial instruments are stocks, treasury bills, commercial paper, money market mutual fund, certificate of deposits, corporate bonds etc. The market where these financial instruments (securities and derivatives) are being traded at a low transaction rate is referred to as the financial market.
Furthermore, financial institutions can be defined as a business firm or company that is involved in the business of trading financial instruments.
Answer:
The correct answer is letter "C": selective distortion.
Explanation:
Selective distortion refers to a perceptual process in which individuals try to make fit new ideas with previous points of view they had about certain topics. This scenario takes place because individuals tend to block new information input so they distort the new information to make it match their beliefs.
