Which of the Following Would NOT Be a Cash Flow

question 9

Multiple Choice

Which of the following would NOT be a cash flow from financing activities?

• A) Purchase of non-current assets.
• B) Dividends paid.
• C) Repayment of a loan.
• D) Proceeds of a share issue.

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Definitions:

Internal Failure Costs

Costs incurred when a defect is discovered before being received by a customer.

Variable Overhead

Costs that vary proportionally with the level of production or sales, such as utilities or commissions.

Fixed Overhead

The portion of overhead costs that remains constant regardless of the level of production or business activity.

Direct Labor

Labor costs that can be identified with a specific product or service.