Which of the Following Represents an Inflow of Cash

question 38

Multiple Choice

Which of the following represents an inflow of cash?

• A) A decrease in any liability
• B) Dividends paid
• C) Repurchase or retirement of stock
• D) An increase in any asset
• E) A decrease in any asset

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Definitions:

Foreign Corporations

Entities incorporated under the laws of a foreign country that do business in another country.

Alien Corporations

Companies that are registered and operating in a country different from where they were originally incorporated.

Private Corporations

Companies that do not offer or trade their company stock (shares) to the general public on the stock market but rather the stock is offered, owned, and traded or exchanged privately.

Closely Held

A company that has a limited number of shareholders and whose stocks are not publicly traded.