Which of the Following Statements Is True

question 90

Multiple Choice

Which of the following statements is true?

• A) Investment in another company's common stock is classified as a cash outflow from financing activities on the Statement of Cash Flows.
• B) Repayment of long-term debt is classified as a cash outflow from investing activities on the Statement of Cash Flows.
• C) Losses on the sale of long-term assets are an adjustment reported in the operating activities section of the Statement of Cash Flows under the indirect method.
• D) Dividends paid are classified as a cash outflow from operating activities on the Statement of Cash Flows.

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Definitions:

Sherman Act

A foundational antitrust law in the United States that prohibits monopolistic practices and promotes competition.

Clayton Act

A U.S. antitrust law, enacted in 1914, aimed at promoting competition and preventing monopolies.

Consumer Protection Act

A legal provision designed to protect the rights of consumers from unfair trade practices, defective goods, and misleading advertisements.

Treble Damages

A legal provision allowing a court to triple the amount of damages to be awarded, typically used as a punishment in certain lawsuits.