Which one of the following is correct about the statement of cash flows?

Question

Quizplus · Accepted Answer

Paying dividends to investors creates a cash outflow from financing activities. Option A is incorrect because a company with a net loss may still have non-cash expenses, such as depreciation, which would reduce net income but not necessarily result in a negative cash flow from operating activities. Option B is incorrect because interest received from a note receivable is a cash inflow from operating activities, not investing activities. Option D is incorrect because the repayment of long-term debt represents a cash outflow from financing activities, not a cash inflow.

Which One of the Following Is Correct About the Statement