Which of the Following Does Not Represent an Outflow of Cash

question 37

Multiple Choice

Which of the following does not represent an outflow of cash and therefore would not be reported on the statement of cash flows as a use of cash?

• A) purchase of noncurrent assets
• B) purchase of treasury stock
• C) discarding an asset that had been fully depreciated
• D) payment of cash dividends

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Definitions:

Present Value

The current worth of a future sum of money or stream of cash flows, given a specified rate of return.

Consideration Transferred

The total payment made by an acquirer to obtain control of an acquiree, which can include cash, assets, or other forms of payment.

Fair Value

A measurement of an asset's sale price, assuming a transaction between knowledgeable, willing parties in an arm's length transaction.