Which of the Following Statements About Cash Flows from Financing

question 202

Multiple Choice

Which of the following statements about cash flows from financing activities is correct?

• A)When a company borrows from lenders,a cash outflow from financing activities has occurred.
• B)When a company receives cash dividends,a cash inflow from financing activities has occurred.
• C)When a company repurchases its own stock,a cash outflow for financing activities has occurred.
• D)When a company pays cash dividends,a cash inflow from financing activities has occurred.

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Definitions:

Absolute Value

A numerical value without regard to its sign, symbolized as |x|, representing the distance of a number on the number line from the origin.

Percentage Change

Percentage change is a mathematical calculation that shows how much a specific number has increased or decreased, expressed as a percentage of its previous value.

Cross-price Elasticity

A measure of how the quantity demanded of one good responds to a change in the price of another good, represented as a ratio.

Complements

Goods or services that are used together, where the consumption of one enhances the use or value of the other.