A Cash Dividend Payment to Shareholders During the Year Should

question 191

Multiple Choice

A cash dividend payment to shareholders during the year should be reported on the statement of cash flows as:

• A)An increase in cash flows from financing activities
• B)An increase in cash flows from investing activities
• C)A decrease in cash flows from operating activities
• D)A decrease in cash flows from investing activities
• E)A decrease in cash flows from financing activities

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Definitions:

Export Subsidy

A governmental financial support for companies exporting products, designed to encourage exports by making them price competitive in global markets.

Dumping

A firm’s or an industry’s sale of products on the world market at prices below its own cost of production.

Natural Comparative Advantage

A situation where a country or region can produce a particular good or service at a lower opportunity cost compared to other countries or regions.

Factor Endowments

Refers to the quantity and quality of resources a country or region has available, such as labor, land, and capital.