Which One of the Following Statements Related to the Cash

question 57

Multiple Choice

Which one of the following statements related to the cash flow to creditors is correct?

• A)If the cash flow to creditors is positive then the firm must have borrowed more money than it repaid.
• B)If the cash flow to creditors is negative then the firm must have a negative cash flow from assets.
• C)A positive cash flow to creditors represents a net cash outflow from the firm.
• D)A positive cash flow to creditors means that a firm has increased its long-term debt.
• E)If the cash flow to creditors is zero, then a firm has no long-term debt.

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