Which of the Following Is a Cash Outflow?​

question 43

Multiple Choice

Which of the following is a cash outflow?​

• A) ​a new issue of bonds
• B) ​a decrease in accounts receivable
• C) ​an increase in plant
• D) ​an increase in accounts payable

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Definitions:

Conversion Ratio

The specific number of shares an investor can receive for every convertible security if they decide to convert it into stock.

Convertible Bond

A type of bond that can be converted into a predetermined number of the issuer's shares, typically at the option of the holder.

Shares of Stock

Units of ownership interest in a corporation or financial asset, allowing the holder to a part of the corporation's profits.