Which of the Following Is Correct About the Statement of Cash

question 91

Multiple Choice

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

• 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 stock 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:

Utilitarianism

An ethical theory that proposes actions are right if they are useful or for the benefit of a majority.

Risk-Benefit Analysis

The assessment of potential risks and benefits associated with a medical treatment or intervention to make informed decisions.

Cost

The amount of money required to purchase, maintain, or operate something.

Inoperable Brain Tumor

A brain tumor that cannot be surgically removed, often because of its location or the patient's health status.