Bridges Company earned $4,000 in cash revenues,paid cash expenses of $3,450,and paid a cash dividend of $300 to its owners.It engaged in no other transactions during the period.Which of the following statements is true?

Question

Quizplus · Accepted Answer

The net cash flow from operating activities is calculated as cash revenues minus cash expenses, which in this case is $4,000 - $3,450 = $550. The cash flow from financing activities is the cash flow related to owners or creditors, and in this case there was a cash dividend paid to owners, so it was not $0. The cash flow from investing activities is related to the acquisition or sale of long-term assets, and there is no information about it in this scenario. Therefore, option B is the correct answer.

Bridges Company Earned $4,000 in Cash Revenues,paid Cash Expenses of $3,450,and