Which of the Following Would Cause a Outflow of Cash

question 12

Multiple Choice

Which of the following would cause a outflow of cash?

• A)Sale of inventory for cash.
• B)The sale of an investment for a loss
• C)Issuing common shares to acquire capital assets
• D)Purchase of a temporary investment

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Definitions:

Miller-Orr Model

A financial model used to manage cash flows and determine optimal cash reserves for a company.

Monthly Disburses

This refers to the process of distributing or paying out funds at regular monthly intervals.

Cheque Delay

A situation where there is a postponement in the processing or clearance of a cheque by a bank.

Average Daily Float

This refers to the average amount of uncollected checks or electronic transfers in the process of clearing.