Which of the Following Is Correct

question 25

Multiple Choice

Which of the following is correct?

• A)Repayments of principal and interest reduce financing activities cash flows.
• B)Repurchase of treasury shares is a cash outflow connected to investing activities.
• C)If a company borrows $450 million in long-term notes and repays $380 million of long-term notes, and then these items must both be disclosed and not netted against each other in the financing section.
• D)Issuing common stock in exchange for the purchase of a building creates both a financing activity and investing activity cash flow.

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Definitions:

Impression Management

The conscious or unconscious effort by individuals to control or influence the perceptions of others about themselves.

Feedback

Information given to individuals or groups about their performance or behavior with the intent to guide future improvements.

Decoding

The process of interpreting or giving meaning to a message received in communication.

Context

The circumstances, conditions, or setting in which an event occurs, influencing its interpretation or outcome.