Which of the Following Is Correct About the Statement of Cash

question 51

Multiple Choice

Which 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.

---

Definitions:

Maintenance

The act of keeping something in good condition through regular care and repairs.

Deposition Transcript

A written record of all spoken words and non-verbal actions during a deposition, as part of pre-trial discovery.

Trial

The formal process in a court of law where the facts of a case are examined, and a judgment is made, typically involving a judge and sometimes a jury.

Waiver

The voluntary relinquishment or surrender of some known right or privilege.