Which of the Following Does Not Represent an Outflow of Cash

question 37

Multiple Choice

Which of the following does not represent an outflow of cash and therefore would not be reported on the statement of cash flows as a use of cash?

• A) purchase of noncurrent assets
• B) purchase of treasury stock
• C) discarding an asset that had been fully depreciated
• D) payment of cash dividends

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Definitions:

Homogeneous Product

A product that is identical or almost identical in features, functions, and quality across different suppliers.

Equilibrium Price

The price at which the quantity of a product offered for sale matches the quantity that consumers are willing to buy, without any leftover surplus or shortage.

Collusion

Collusion is an agreement among firms in a market to coordinate actions to achieve a higher price or market control, resulting in less competition.

Oligopolistic Producers

Companies within an industry where a small number of firms hold a large market share, leading to limited competition.