Which of the Following Statements Is True Regarding Cash Flows

question 70

Multiple Choice

Which of the following statements is true regarding cash flows from financing activities?

• A)When companies borrow,cash outflows for financing activities have occurred.
• B)When companies receive dividends,cash inflows from financing activities have occurred.
• C)When companies repurchase their own stock,cash outflows for financing activities have occurred.
• D)When companies pay dividends,cash inflows from financing activities have occurreD.Financing activities include issuing long-term debt (cash inflow),issuing stock (cash inflow),repurchasing their own stock (cash outflow),and paying dividends (cash outflow).A dividend received from investments is an operating activity,not a financing activity.

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