Which of the following identities is FALSE?
A)Cash Flow to Creditors = Interest Expense - Net New Borrowing from Creditors
B)Net New Borrowing = Ending Long-term Liabilities - Beginning Long-Term Liabilities
C)Cash Flow to Owners = Dividends + Net New Borrowing from Owners
D)Net New Borrowing from Owners = Change in Equity

Question

Quizplus · Accepted Answer

Cash Flow to Owners = Dividends + Net New Borrowing from Owners is a true identity, as per the financing activities section of the statement of cash flows. A, B, and D are also true identities. Therefore, the false identity is C.

Which of the Following Identities Is FALSE