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A Business Entity That Shows a Positive Cash Flow from Operations,a

Question 18

Multiple Choice

A business entity that shows a positive cash flow from operations,a negative cash flow (i.e. ,a cash outflow) from investing and a negative cash flow (i.e. ,a cash outflow) from financing is a business entity which:


A) Is profitable,does not prepare itself for future challenges and reimburses its debt.
B) Is incurring a loss,prepares itself for the future and has obtained new long-term funds from external sources.
C) May be profitable or may experience a loss,probably invests more than it divests and probably has reimbursed some of its debt.
D) May be profitable or may experience a loss,probably divests more than it invests and has issued new common stock for an amount in excess of the amount of dividends paid to current shareholders.

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