Which of the Following Statements About the Statement of Cash

question 58

Multiple Choice

Which of the following statements about the statement of cash flows is correct? 

• A) A purchase of equipment is classified as a cash inflow from investing activities.
• B) Cash dividends paid are classified as cash flows from operating activities.
• C) Cash dividends received on stock investments are classified as cash flows from operating activities.
• D) A company with a net loss on the income statement will always have a net cash outflow from operating activities.

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Definitions:

Utility Function

A mathematical representation of how consumer preferences over a set of goods and services are ranked.

Horizontal Axis

In a graphical representation, the x-axis, which typically shows the independent variable or the quantity of goods.

Vertical Axis

in a graph or chart, the y-axis which typically represents the range of values or dependent variables.

Perfect Substitute

Goods that can be completely replaced by another with no loss of utility to the consumer, such as different brands of sugar.