Which of the Following Would Result in a Cash Inflow

question 43

Multiple Choice

Which of the following would result in a cash inflow under the heading 'Cash flow from investing' in the statement of cash flows?

• A)Purchase of capital equipment
• B)Payments to suppliers for inventory
• C)Collections on receivables
• D)Sale of production machinery

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Definitions:

Income Effect

The change in an individual's or economy's income and how that change will affect the quantity demanded of a good or service.

Money Income

The total income in the form of money received by an individual or household before taxes from all sources in a given time period.

Consumer

Consumer is an individual or group that purchases goods or services for personal use, not for manufacture or resale, driving the demand side of the marketplace.

Substitute Goods

Products or services that can be used in place of one another, fulfilling the same needs or wants of the consumer.