Which of the Following Statements Is Not Correct

question 84

Multiple Choice

Which of the following statements is not correct?

• A)Issuance of common stock creates a financing activities cash inflow.
• B)Payment of a common stock cash dividend creates an operating activities cash outflow.
• C)Purchase of treasury stock creates a financing activities cash outflow.
• D)Issuance of preferred stock creates a financing activities cash inflow.

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Definitions:

Commission Charges

Fees charged by brokers or agents for their services in facilitating transactions.

Dollar Amount

A numeric monetary value measured in units of the currency dollar.

Preferred Stock

A type of stock that gives holders preferential treatment over common stockholders, usually through dividends and upon liquidation.

Common Stock

Equity ownership in a corporation, with voting rights and potential for dividends.