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The emphasis in accounting is on the determination of accounting income, or net income, while the emphasis in finance is on cash flows. Which of the following events will cause cash flow to increase?

A stock dividend is declared for current shareholders of the corporation.

Inventory is sold and an accounts receivable entry is recorded.

The corporation makes interest payments to the bank on borrowed funds.

The corporation sells a fully depreciated asset for cash.

Financial Management, Finance

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  • Reference No.:- M92433257

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