Which One of the Following Actions Should a Company Take

question 82

Multiple Choice

Which one of the following actions should a company take IMMEDIATELY when it finds that its product is defective?

• A)inform buyers about it
• B)take corrective action in a timely manner
• C)stop producing the product
• D)lower the price

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Definitions:

Financing Activities

involve transactions related to raising capital and repaying investors, including issuing equity, obtaining loans, and paying dividends.

Direct Method

A cash flow statement preparation approach showing actual cash inflows and outflows from operating activities without adjustments for non-cash transactions.

Operating Activities

Activities that are directly related to the primary operations of the company, including cash inflows and outflows from selling products and services.

Indirect Method

A financial reporting approach to prepare the cash flow statement where non-cash activities are adjusted to the net income to calculate cash flow from operating activities.