Which One of the Following Is the Best Example of an Announcement

question 59

Multiple Choice

Which one of the following is the best example of an announcement that is most apt to result in an unexpected return?

• A) A news bulletin that the anticipated layoffs by a firm will occur as expected on December 1
• B) Announcement that the CFO of the firm is retiring June as previously announced
• C) Announcement that a firm will continue its practice of paying a $3 a share annual dividend
• D) Statement by a firm that it has just discovered a manufacturing defect and is recalling its product
• E) The verification by senior management that the firm is being acquired as had been rumored

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Definitions:

Indirect Method

A cash flow statement preparation method that adjusts net income for non-cash transactions and changes in working capital to calculate cash flow from operating activities.

Accounts Payable

Liabilities owed to vendors or suppliers for goods or services received that haven't been paid for yet.

Net Income

It refers to the bottom line of a company's income statement, indicating the earnings after all deductions.

Noncash Activities

Financial transactions that do not involve the immediate transfer of cash, often reflected in supplemental disclosures in cash flow statements.