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:

Degrees of Freedom

Refers to the number of independent values or quantities which can be assigned to a statistical distribution, crucial for the calculation of statistical parameters.

Sample Size

The number of individual observations or data points used in a statistical analysis.

Pearson Correlation Value

A statistic that measures the linear correlation between two variables, indicating the strength and direction of their relationship.

Variance

A measure of the dispersion or spread of a set of values, calculated as the average of the squared deviations from the mean.