Which of the Following Would Cause a Cash Outflow from Investing

question 58

Multiple Choice

Which of the following would cause a cash outflow from investing activities?

• A)Purchasing shares of stock of another company.
• B)Paying a cash dividend to stockholders.
• C)Issuing additional shares a company's stock.
• D)Using cash to purchase inventory.

---

Definitions:

Passive Voice

A sentence structure where the subject of the sentence receives the action, emphasizing the action rather than the doer.

Bad-News Statement

A communication that conveys unfortunate, disappointing, or unfavorable information to the recipient.

Opening Paragraph

The initial section of a text that introduces the topic, sets the tone, and presents the main idea or thesis.

Deductive Approach

A method of reasoning from the general to the specific, where conclusions follow logically from premises or known facts.