Which of the Following Is Not Correct About the Statement

question 62

Multiple Choice

Which of the following is not correct about the statement of cash flows?

• A)Paying dividends to investors creates a cash outflow from financing activities.
• B)A purchase of equipment is classified as a cash outflow from investing activities.
• C)A company with a net loss on the income statement will always have a net cash outflow from operating activities.

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Definitions:

Coal

A natural, black or brownish-black sedimentary rock used primarily as a fuel source in electricity generation and steel production.

Petroleum

A liquid mixture of hydrocarbons that is present in certain rock strata and can be extracted and refined to produce fuels including gasoline, kerosene, and diesel oil.

Domestic Fuel

Fuels used for household purposes, such as cooking, heating, or electricity generation, which include natural gas, coal, and biofuel.

Net Energy Ratio

A measure comparing the amount of energy delivered by a system to the amount of energy used to build, maintain, and operate the system.