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Financial Forensics · Quiz 1 · 26 Oct 2025 · September 2025 term

Question 17: Which of the following statements is correct regarding a…

Question 17

+1 markOne correct option

Which of the following statements is correct regarding activities and how they impact financial statements?

  1. A

    The payment of a cash dividend reduces net income.

  2. B

    Cash received from issuing common stock to stockholders is reported as a financing activity cash flow within the statement of cash flows.

  3. C

    Providing services to a customer on account does not impact net income.

  4. D

    The purchase of manufacturing equipment is reported within the statement of cash flows as a financing activity.

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Correct answer

  • B

    Cash received from issuing common stock to stockholders is reported as a financing activity cash flow within the statement of cash flows.

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Question 17 of 25 in the IIT Madras BS Financial Forensics (Financial Forensics) Quiz 1 paper sat on 26 Oct 2025, in the September 2025 term (IIT M DEGREE AN EXAM QDB2 26 Oct 2025). It carries 1 mark.

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