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Elena-2011 [213]
3 years ago
9

Dividends paid to a company's own stockholders of $80,000 would be shown on the company's statement of cash flows prepared under

the indirect method as: Select one: a. an addition of $80,000 under investing activities. b. a deduction of $80,000 under investing activities. c. an addition of $80,000 under financing activities. d. a deduction of $80,000 under financing activities.
Business
1 answer:
7nadin3 [17]3 years ago
6 0

Answer: d. a deduction of $80,000 under financing activities.

Explanation:

Under the indirect method of showing cashflows, there are 3 sections being the Operating section, the investing section and the financing section.

The relevant section is the financing section. Financing activities are those transactions that relate to the business raising capital to fund their operations. They do this through long term debt and equity.

Dividends is a payment to shareholders and so falls under equity so by extension falls under the financing section. As dividends reduce the amount of money the company has, it is also a deduction.

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As a part of crisis management budgeting the companies contribute to employee loss expenses (such as funerals) as well as for counseling services for employees and loved ones.

Option a

<u>Explanation:</u>

The process through which the company manages an unexpected or disruptive event or happening that may threaten a harm or shortcoming to the employees or stakeholders or the organization.

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(b) short decision time

(c) element of surprise

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3 years ago
All activities associated with the flow and transformation of goods and services from the raw material stage to the end user, to
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6 0
4 years ago
Read 2 more answers
The social and economic goals of __________ include private ownership of land and business.
MrRa [10]

Answer:

Capitalism

Explanation:

<em>The social and economic goals of CAPITALISM include private ownership of land and business.</em>

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7 0
3 years ago
Free cash flow (FCF) and net income (NI) differ in the following ways:
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Answer:

c.  I, II, and III only

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Therefore, I, II and III statements are considered

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3 years ago
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