Which One of the Following Is Correct About the Statement

question 53

Multiple Choice

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

• A) A company with a net loss will always have a cash outflow from operating activities.
• B) Collecting interest earned from a note receivable creates a cash inflow from investing activities.
• C) Paying dividends to investors creates a cash outflow from financing activities.
• D) The repayment of long-term debt is a cash inflow from financing activities.

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Definitions:

Canada

A country located in the northern part of North America, known for its vast landscapes, multicultural population, and as a prominent producer of natural resources.

Visible Minorities

Individuals of a non-dominant race or ethnicity in a given population who are distinguishable by their physical appearance from the majority population.

Toronto

A major Canadian city along Lake Ontario's northwestern shore, known for its dynamic mix of tourist attractions, cultural institutions, and financial centers.