Which of the Following Statements About the Statement of Cash

question 117

Multiple Choice

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

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

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Definitions:

Civil Libertarians

Advocates or defenders of the rights and freedoms guaranteed to individuals by law, particularly those related to the protection of civil liberties against government infringement.

Department of Justice

A federal executive department of the U.S. government responsible for the enforcement of the law and administration of justice.

Basic Freedoms

Basic freedoms are fundamental rights or liberties considered essential for human dignity and social development, often protected by law, including freedom of speech, religion, press, assembly, and petition.

Major Recession

Refers to a significant period of economic decline across a country or the world, marked by high unemployment rates, falling stock markets, and reduced industrial production.