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.

---

Definitions:

Simple Words

Utilization of words that are easy to understand or communicate, typically used to ensure clarity or inclusiveness in communication.

Repetition

The action of repeating something that has already been said or written, often for emphasis or to aid memorization.

Vocabulary Explosion

A rapid increase in the number of words a child learns and uses, commonly observed between the ages of two and three.

Naming

The act or process of providing a name to a person, place, thing, or concept.