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:

Installation Costs

Expenses incurred to place an asset into service and prepare it for its intended use.

Freight Costs

Expenses incurred by a company for transporting goods, which may include shipping, handling, and insurance fees.

Asset Retirement Costs

Costs associated with removing equipment or property from service and disposing of it in accordance with legal and regulatory guidelines.

Depreciable Asset

A tangible or intangible asset subject to depreciation, reflecting the decline in the asset's value over its useful life.