Which of the Following Would Cause an Outflow of Cash

question 177

Multiple Choice

Which of the following would cause an outflow of cash?

• A) Issuance of long-term debt to finance a construction project
• B) Collection on an account receivable
• C) Cash purchase of a long-term marketable security
• D) Sale of a long-term asset for cash

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Definitions:

Principal Debtor

The primary individual or entity responsible for repaying a debt or fulfilling an obligation.

Personal Defense

Legal justifications used in civil and criminal cases that excuse or minimize the defendant's liability due to personal circumstances.

Attachment

A legal procedure by which a plaintiff can secure a defendant's property in the jurisdiction of the court to satisfy a judgment.

Secured Party

An individual or entity that holds an interest in a secured transaction, typically holding collateral against a loan or obligation.