Which of the Following Statements Is True

question 138

Multiple Choice

Which of the following statements is true?

• A)Purchase of equipment is a cash outflow for investing activities.
• B)Proceeds from the sale of bonds is a cash inflow from investing activities.
• C)Cash paid for accounts payable is a cash outflow for financing.
• D)Sale of treasury stock is a cash inflow from investing activities.

---

Definitions:

Complaint

A formal legal document initiating a lawsuit, outlining the plaintiff's claims against the defendant and the relief sought.

Summons

A legal document issued by a court or administrative agency, notifying an individual of their obligation to appear before the court or agency.

Interrogatory

A written question which one party sends to another during a lawsuit, requiring a written answer as part of the discovery process.

Affirmative Defense

An affirmative defense is a legal argument or set of facts presented by a defendant, asserting reasons that the defendant should not be held liable for a legal claim, even if the claim is true.