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:

Self-serving Bias

A common tendency to attribute one's successes to personal characteristics and failures to external factors.

Just-world Hypothesis

The cognitive bias that assumes that actions always yield morally fair and fitting consequences, essentially that the world is just.

Groupthink

A psychological phenomenon that occurs within a group of people when the desire for harmony or conformity in the group results in an irrational or dysfunctional decision-making outcome.

Symptoms

Signs or indications of a disease, disorder, or condition, often experienced by the individual affected.