Which One of the Following Statements Related to the Cash

question 57

Multiple Choice

Which one of the following statements related to the cash flow to creditors is correct?

• A)If the cash flow to creditors is positive then the firm must have borrowed more money than it repaid.
• B)If the cash flow to creditors is negative then the firm must have a negative cash flow from assets.
• C)A positive cash flow to creditors represents a net cash outflow from the firm.
• D)A positive cash flow to creditors means that a firm has increased its long-term debt.
• E)If the cash flow to creditors is zero, then a firm has no long-term debt.

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Definitions:

Oblique-Slip Faults

Faults that combine features of both strike-slip and dip-slip faults, moving both horizontally and vertically.

Normal Fault

A type of fault where the hanging wall moves downward relative to the footwall due to tensional forces.

Reverse Fault

A type of fault where the hanging wall moves up relative to the footwall due to compressional forces.

Strike-Slip Fault

A type of fault where two blocks of earth slide past each other horizontally.