Which of the Following Statements Is Not Correct

question 84

Multiple Choice

Which of the following statements is not correct?

• A)Issuance of common stock creates a financing activities cash inflow.
• B)Payment of a common stock cash dividend creates an operating activities cash outflow.
• C)Purchase of treasury stock creates a financing activities cash outflow.
• D)Issuance of preferred stock creates a financing activities cash inflow.

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Definitions:

General Ledger

A comprehensive accounting record of all transactions that affect a company, summarized by account.

Trial Balance

A bookkeeping report that lists the balances of all ledgers accounts to check that debits equal credits in the double-entry accounting system.

Accounts Receivable

The money owed to a company by its customers for goods or services that have been delivered or used but not yet paid for.

Accounts Payable

The amount a company owes to suppliers or vendors for goods or services received but not yet paid for.