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:

Sales Taxes

Levies imposed by governments on the sale of goods and services, contributing to public revenue.

Constant-rate

A process or condition that occurs at a steady, unchanging rate over time.

Regressive

Regressive, in economic terms, often refers to a tax system where the tax rate decreases as the taxable amount increases, imposing a greater burden on lower-income individuals.

Marginal Tax Rate

The percentage of an increase in income that is taxed away.