Which of the following statements about cash flows from financing activities is correct?
A) When a company borrows from lenders, a cash outflow from financing activities has occurred.
B) When a company receives cash dividends, a cash inflow from financing activities has occurred.
C) When a company repurchases its own stock, a cash outflow for financing activities has occurred.
D) When a company pays cash dividends, a cash inflow from financing activities has occurreD.
When a company repurchases its own stock, a cash outflow for financing activities has occurreD.
When a company borrows from lenders, a cash inflow (rather than an outflow) from financing activities has occurreD.
When a company receives cash dividends, a cash inflow from operating (rather than financing) activities has occurreD.
When a company pays cash dividends, a cash outflow (rather than an inflow) from financing activities has occurreD.
Correct Answer:
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