Q
Which of the following equation is known as Cash Flow (CF) identity?
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A
A. Cf from assets = cf to creditors β cf to stockholder
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B
B. Cf from assets = cf to stockholders β cf to creditors
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C
C. Cf to stockholders = cf to creditors + cf from assets
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D
D. Cf from assets = cf to creditors + cf to stockholder
Correct Answer:
D. D. Cf from assets = cf to creditors + cf to stockholder