Which of the Following Will Occur in a Statement of Cash

question 97

Multiple Choice

Which of the following will occur in a statement of cash flows as a result of paying cash dividends?

• A)cash flows from operations will increase.
• B)cash flows from investments will decrease.
• C)cash flows from financing will decrease.
• D)cash balances will not be affected.

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Definitions:

Identical Expected Values

Situations where two or more uncertain alternatives have the same expected outcome or result.

Investment Opportunity

A financial or economic chance to invest capital with the expectation of achieving a profitable return.

Risk Averse

Condition of preferring a certain income to a risky income with the same expected value.

Expected Benefit

The anticipated or forecasted gain or advantage that arises from a specific action or decision, often considered in cost-benefit analysis.