Which of the Following Statements Is True

question 126

Multiple Choice

Which of the following statements is true?

• A)A company with a positive net income will also have a positive net cash flow.
• B)Payment of dividends is a cash outflow for operating activities.
• C)Cash paid for dividends is subtracted from net income.
• D)Payment of interest is a cash outflow for operating activities.

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Definitions:

Price Index

A statistical measure that examines the weighted average of prices of a basket of consumer goods and services, showing trends over time.

Base Year

A specific year against which economic, financial, or statistical data is standardized or indexed, allowing for comparison over time.

Consumer Price Index

The Consumer Price Index (CPI) measures the average change over time in the prices paid by urban consumers for a basket of consumer goods and services.

Inflation Rate

The pace at which the overall price level for goods and services increases, diminishing the buying power.