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:

Focal Date

A specific point in time that serves as a reference or target for financial calculations or contractual obligations.

Loan Date

The specific date on which a loan agreement is signed, and the funds are disbursed to the borrower.

Plant Capacity

Plant capacity refers to the maximum output or production that a manufacturing facility can achieve under normal conditions.

Variable Costs

Costs that vary directly with the level of production or volume of output, in contrast to fixed costs.