Which of the Following Cannot Be Classified Under Cash Flow

question 45

Multiple Choice

Which of the following cannot be classified under cash flow from operations?

• A) Interest received
• B) Dividends received
• C) Interest paid
• D) Dividends paid

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Definitions:

Default Risk

The possibility that a borrower will be unable to make the required payments on their debt obligations.

Maturity Risk

The risk associated with the length of time until the face value of a bond or other debt instrument is repaid, affecting its price and yield.

Bond Investing

The process of investing in bonds, which are debt securities, to earn a return from interest payments and potential price appreciation.

Canada Call

A provision in some bonds that allows the issuer to redeem the bond early, specifically in the Canadian market.