Which of the Following Is Not True Regarding Cash Flows

question 101

Multiple Choice

Which of the following is not true regarding cash flows?

• A) Operating activities include the payment of dividends.
• B) Investing activities involve long-term investments.
• C) Financing activities involve long-term liabilities and equities.
• D) Purchasing a building with a note is considered a noncash activity.

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Definitions:

Tax

A compulsory financial charge imposed by a government on individuals or entities to fund various public expenditures.

Marginal Social Benefit

An additional gain to society derived from consuming or producing another unit of a good or service.

Marginal Social Cost

An increased charge to the general public for the creation of one more unit of a product or service.

Pollution

The presence in or introduction into the environment of a substance or thing that has harmful or poisonous effects.