According to the Statement of Cash Flows, Cash Flows from Financing

question 55

Multiple Choice

According to the statement of cash flows, cash flows from financing could be positive if:

• A)The firm repaid more debt than it added
• B)The firm added more debt than it repaid
• C)Interest rates were low on outstanding debt
• D)The firm sold portions of its plant and equipment

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Definitions:

Production Function

An economic model that describes the relationship between the inputs a firm uses and the output it creates.

Competitive

Relates to a market situation where multiple sellers are trying to appeal to the same customers, often leading to innovation and better prices.

Labor Market

An economic marketplace that matches potential employers with employees based on their skills, job requirements, and wage expectations.

Wage

The amount of money that is paid to an employee by an employer, typically in exchange for the employee's labor, calculated on an hourly, daily, or piecework basis.