Which of the Following Would Be Reported as a Cash

question 66

Multiple Choice

Which of the following would be reported as a cash outflow from investing activities?

• A)Donating an old piece of equipment to charity.
• B)Repaying the principal of a bond.
• C)Buying another company's bonds with cash.
• D)Paying for an investment asset by issuing company stock.

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Definitions:

Duties

Obligations or tasks that an individual is required or expected to perform.

Rights

Freedoms or entitlements that individuals are guaranteed by law or social agreement.

Voidable

A legal term referring to a transaction or agreement that is valid but may be annulled by one or more of the parties involved.

Anti-assignment Clause

A provision in a contract that prohibits the transfer of rights or delegation of duties to another party without prior approval.