Which of the Following Is Not Classified as a Cash

question 6

Multiple Choice

Which of the following is not classified as a cash outflow from operating activities?

• A) Cash payments to creditors for interest
• B) Cash payments to stockholders for dividends
• C) Cash payments to employees for services rendered
• D) Cash payments on payables to material suppliers

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Definitions:

Tax Revenue

Income earned by the government from taxing individuals and businesses.

Tax

An obligatory fiscal charge or another form of assessment applied to a taxpayer by a government body to finance government operations and diverse public expenses.

Deadweight Loss

Deadweight loss is an economic inefficiency that arises when a market outcome is not optimal, resulting in a loss of total surplus due to factors like taxes or monopolies.

Supply

The total amount of a product or service that is available for purchase at any given time.