Which of the Following Identities Is FALSE

question 60

Multiple Choice

Which of the following identities is FALSE?

• A)Change in Equity = Paid-in-Surplus - Net New Borrowing from Creditors
• B)Net New Borrowing = Ending Long-term Liabilities - Beginning Long-Term Liabilities
• C)Cash Flow to Owners = Dividends - Net New Borrowing from Owners
• D)Net New Borrowing from Owners = Change in Equity

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Definitions:

Cash Flow Statement

A cash flow statement is a financial document that provides aggregate data regarding all cash inflows and outflows a company receives from its operating, investing, and financing activities.

Noncash Assets

Assets owned by a company that are not in the form of cash or cash equivalents, including property, plant, equipment, and intellectual property.

Δ Stockholders' Equity

The change in the total value of a company's equity over a specific period, influenced by earnings, dividends, and stock issues.

Financing Activities

Transactions and events where a company generates or repays capital to finance its operations.