Asked by
Benjie Llanto
on Oct 27, 2024
Verified
Which of the following statements about the statement of cash flows is correct?
A) A company with a net loss on the income statement will always have a net cash outflow from operating activities.
B) A purchase of equipment is classified as a cash inflow from investing activities.
C) Cash dividends received on stock investments are classified as cash flows from operating activities.
D) Cash dividends paid are classified as cash flows from operating activities.
Operating Activities
Transactions and events that relate to the core business functions, such as receipts from sales of goods and services, payments to suppliers, and salaries to employees.
- Ascertain the various categories of cash flows outlined in the cash flow statement.
Verified Answer
VF
Learning Objectives
- Ascertain the various categories of cash flows outlined in the cash flow statement.
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