Which of the Following Financing Activities Results in a Cash

question 6

Multiple Choice

Which of the following financing activities results in a cash outflow?

• A) purchase of long-term investments.
• B) collecting accounts receivable.
• C) payment of dividends.
• D) issuance of bonds.

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Definitions:

Direct Method

In cost accounting, a method to allocate service department costs directly to producing departments without considering services rendered between service departments.

Net Cash

The amount of cash available after all cash inflows and outflows have been accounted for.

Operating Activities

Transactions and events related to the primary business operations, including the production, sales, and delivery of a company's products and services.

Financing Activities

Transactions that involve raising capital or repaying investors, such as issuing equity or taking on new loans.