Which of the Following Would Cause an Inflow of Cash

question 120

Multiple Choice

Which of the following would cause an inflow of cash?

• A) Payment of a long-term bond
• B) Sale for cash of a short-term investment at its cost
• C) Payment of accounts payable
• D) Repurchase of common stock for cash
• E) Accrual of a dividend

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Definitions:

Net Present Value

The disparity between the current value of cash coming in and the current value of cash going out over a specific duration.

Net Income

The total earnings of a company after subtracting all expenses, taxes, and costs from its total revenue.

Net Cash Flow

The difference between a company's cash inflows and outflows over a specific period, indicating its ability to generate cash.

Differential Revenue

The amount of increase or decrease in revenue expected from a particular course of action as compared with an alternative.