Which of the Following Statements Is Not Correct

question 98

Multiple Choice

Which of the following statements is not correct?

• A)Cash flow from financing activities increases when treasury shares are resold.
• B)Cash dividends decrease cash flow from financing activities.
• C)Cash flow from investing activities decreases when treasury shares are purchased.
• D)Issuance of new shares of stock increases cash flow from financing activities.

---

Definitions:

Small U.S. Stocks

Refers to shares in small-cap companies based in the United States, typically characterized by a small market capitalization.

Long-Term U.S. Treasury Bonds

Bonds issued by the U.S. government with a maturity of typically 20 or 30 years, considered to be one of the safest long-term investments.

EAR

stands for Effective Annual Rate, a calculation that reflects the annual interest on an investment or loan, taking into account the effect of compounding interest.

APR

Annual Percentage Rate, which represents the annualized cost of credit including interest and other charges, helping consumers compare the cost of loans.