Which of the Following Transactions Would Not Create a Cash

question 7

Multiple Choice

Which of the following transactions would not create a cash flow? 

• A) Payment of a cash dividend.
• B) The company purchased some of its own stock from a stockholder.
• C) Amortization of patent for the period.
• D) Sale of equipment at book value (i.e.no gain or loss).

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Definitions:

Opportunity Cost

Neglecting the potential profits from various alternatives upon the decision of one.

Coolers

Insulated containers used to keep food and drinks cold.

Radios

Electronic devices that receive and play audio broadcasts over the airwaves.

Trade

The action of buying, selling, or exchanging goods and services between people or countries.