$$\begin{array} { l l } \text { Dividends received } & 16,000 \\\text { Interest paid } & 20,000 \\\text { Interest received } & 42,000\end{array}$$

question 61

Multiple Choice

$$\begin{array} { l l } \text { Dividends received } & 16,000 \\\text { Interest paid } & 20,000 \\\text { Interest received } & 42,000\end{array}$$
-With regard to the above information,which of the following is acceptable as part of preparation of the statement of cash flows? $\begin{array}{lr}&\text { Cash from operating activities } & \text { Cash from/(used by) investing activities } \\\hline a.&\text { \$0 } & \$ 42,000 \\b.&\$ 58,000 & (\$ 20,000) \\c.&\text { \$0 } & \$ 38,000 \\d.&\$(20,000) & \$ 58,000\end{array}$

• A)Option A
• B)Option B
• C)Option C
• D)Option D

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Definitions:

Negligence

A failure to behave with the level of care that someone of ordinary prudence would have exercised under the same circumstances.

Strict Liability

A legal principle holding an individual or entity responsible for damages or injuries caused by their actions or products, regardless of negligence or intent.

Implied Warranty

An unwritten guarantee that the product or service being sold is fit for its intended purpose.

Express Warranty

A promise or guarantee made by a seller about the quality, function, or performance of a product, explicitly stated in the contract or sales agreement.