Which one of the following statements related to the cash flow to creditors is correct?

Corporate Finance

Which one of the following statements related to the cash flow to creditors is correct?

If the cash flow to creditors is positive then the firm must have borrowed more money than it repaid.
If the cash flow to creditors is negative then the firm must have a negative cash flow from assets.
A positive cash flow to creditors represents a net cash outflow from the firm.
A positive cash flow to creditors means that a firm has increased its long-term debt.

Note

The following statements related to the cash flow to creditors is correct a positive cash flow to creditors represents a net cash outflow from the firm.

Tags: Financial Statements, Taxes, and Cash Flow

Note

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