Which of the Following Is an Example of a Cash

question 14

Multiple Choice

Which of the following is an example of a cash inflow from a financing activity?

• A)Issuance of bonds.
• B)Sale of an intangible asset.
• C)Receipt of cash dividends.
• D)Purchase of land.

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Definitions:

Risk Aversion

A preference for guaranteed outcomes over those with uncertainty, even if the uncertain outcome might offer a higher expected return.

Utility from Insurance

The satisfaction or utility gained by individuals from reducing uncertainty and risk in their lives through the purchase of insurance contracts.

Income Increase

Income increase refers to the rise in an individual's or household's earnings, affecting their purchasing power and consumption habits.

Fair Insurance Policy

An insurance policy for which the premium is equal to the expected value of the claim.