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:

True Score

The theoretical value that precisely reflects an individual's actual ability or characteristic measured by a test, absent of any measurement error.

Construct Validity

The extent to which an assessment accurately gauges what it professes to evaluate.

Reliable

Pertains to the consistency of a measure or instrument; if the results are repeatable under the same conditions.

Valid

Refers to the extent to which a concept, conclusion, or measurement is well-founded and corresponds accurately to the real world.