Of the Following, Which Is NOT a Cash Outflow from an Investing

question 113

Multiple Choice

Of the following, which is NOT a cash outflow from an investing activity?

• A) Purchase of long-term investments, such as the stock of another company
• B) Loans made to another party
• C) Purchase of treasury stock
• D) Purchase of land

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Definitions:

Restrictive Financial Policy

Policies implemented by firms to control their financial risk, often including tight controls over credit terms and dividend payments.

Premium Prices

Premium prices are higher than average prices charged for products or services, often because of perceived superiority in quality or branding.

Accounts Receivable Financing

A secured short-term loan that involves either the assignment or factoring of receivables.

Factoring

A financial transaction where a business sells its accounts receivable to a third party at a discount for immediate cash.