Which of the Following Is a Cash Flow Resulting from a Financing

question 40

Multiple Choice

Which of the following is a cash flow resulting from a financing activity?

• A)Purchasing an automobile by borrowing money from the bank
• B)Receiving a cash dividend on an investment in another company
• C)Declaring a dividend on common stock
• D)Issuing 1,000 shares of preferred stock

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Definitions:

Doctrine of Mistake

Legal principles that allow a contract to be declared void if both parties were under a mutual misunderstanding about a key fact of the agreement.

Willful Blindness

The deliberate avoidance of acknowledging information or facts that one could easily know, often to escape liability.

Unfair

Acting in a manner that is unjust, biased, or not in accordance with the rules or standards.

Rectification

The legal process of correcting an error or omission in a document to reflect the true intention of the parties involved.