Which of the Following Statements About the Statement of Cash

question 49

Multiple Choice

Which of the following statements about the statement of cash flows is correct?

• A)A company with a net loss on the income statement will always have a net cash outflow from operating activities.
• B)A purchase of equipment is classified as a cash inflow from investing activities.
• C)Cash dividends received on equity investments are classified as cash flows from operating activities.
• D)Cash dividends paid are classified as cash flows from operating activities.

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Definitions:

Reduction Range

A gearset or mechanism designed to reduce the input speed to a lower output speed, increasing torque in applications like vehicle transmissions.

Idle Rpm

The rotational speed of an engine (in revolutions per minute) when it is idling, or running without any load or acceleration.

Coaxial Spring

A type of spring system where two or more springs are arranged along a common axis, usually one inside the other.

Friction Discs

Components within a mechanical clutch that provide the necessary friction to transfer torque from the driving to the driven shaft, often made of materials that improve grip and durability.