Which of the Following Statements Is True Regarding Cash Flows

question 61

Multiple Choice

Which of the following statements is true regarding cash flows from financing activities?

• A)When companies borrow,cash outflows for financing activities have occurred.
• B)When companies receive dividends,cash inflows from financing activities have occurred.
• C)When companies repurchase their own stock,cash outflows for financing activities have occurred.
• D)When companies pay dividends,cash inflows from financing activities have occurred.

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Definitions:

Promissory Note

A financial instrument involving a written promise by one party to pay another party a definite sum of money either on demand or at a specified future date.

Presentment

The act of formally presenting a document, such as a check or draft, for acceptance or payment.

Dishonored

Refers to a financial instrument (check, promissory note) that is not accepted or paid upon presentation.

Primarily Liable

Being the first or main party responsible for fulfilling a debt or obligation.