Which of the Following Statements Regarding Financing Activities Is Not

question 58

Multiple Choice

Which of the following statements regarding financing activities is not true?

• A)Cash dividends paid to a company's stockholders are reported as cash outflows from financing activities.
• B)When a company issues stock for cash,it reports a cash inflow from financing activities.
• C)When a company repurchases stock with cash,it reports a cash outflow for financing activities.
• D)When a company repays a loan,it reports a cash inflow from financing activities.

---

Definitions:

Full Production

The level of production where a company uses all its resources efficiently.

Unemployment Rate

The part of the labor force that is without employment but is actively interested in finding a job.

Full Employment

An economic situation in which all available labor resources are being used in the most economically efficient way.

Production Possibilities Curve

The potential total output combinations of any two goods for an economy.