Which of the Following Is a Cash Outflow

question 96

Multiple Choice

Which of the following is a cash outflow?

• A)splitting the stock two for one
• B)acquiring inventory
• C)retaining earnings
• D)switching from straight-line depreciation to accelerated depreciation

---

Definitions:

IFRS

International Financial Reporting Standards, a set of accounting guidelines that provide a global framework for how public companies prepare financial statements.

Lower of Cost

An accounting principle requiring that inventory be recorded at the lower of its original cost or current market value.

Matching

An accounting principle where expenses are recorded in the period they are incurred to generate revenues.

Ending Inventory

The total value of goods available for sale at the end of an accounting period.