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:

Strategic Management Approach

An organizational management activity focused on setting priorities, concentrating resources, and ensuring operations are aligned with long-term objectives and the external environment.

Market Synergy

The combined effect that exceeds the sum of individual effects, achieved when companies or products integrate, leading to enhanced market presence or competitiveness.

Technological

Relating to or involving technology, especially in regard to its development, implementation, and impact on society.

Informed Judgment Forecasts

Predictions about future events, trends, or behaviors made by experts using their knowledge and experience.