Which of the Following Does NOT Involve a Cash Flow

question 44

Multiple Choice

Which of the following does NOT involve a cash flow in 2016?

• A) Payment in 2016 of insurance for 2017
• B) Purchase of inventory in 2016,to be paid in 2017
• C) Borrowing from the bank in 2016,to be repaid in 2018
• D) Cash sales in 2016

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Definitions:

Demand

The desire to purchase goods and services backed by the ability and willingness to pay, at a given price level within a specific time period.

Quantity Demanded

refers to the total amount of a good or service that consumers are willing and able to purchase at a specific price level in a given period.

Demand

The quantity of a good or service that consumers are willing and able to purchase at various prices during a certain period of time.

CDs

Certificates of Deposit, savings certificates with a fixed maturity date and specified fixed interest rate, offering a low-risk investment option.