Which of the Following Is a Cash Outflow for a Financing

question 73

Multiple Choice

Which of the following is a cash outflow for a financing activity on the statement of cash flows?

• 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:

Specific Customer

A distinct client or customer that a business targets, serves, or deals with, often characterized by unique preferences or requirements.

Exchange Price

Exchange price refers to the price at which a commodity, security, or currency is traded on an exchange market.

Generally Accepted Accounting Principles (GAAP)

A framework of accounting standards, conventions, and rules that accountants follow to compile financial statements.

Critical Event

A significant occurrence that has a substantial impact on an operation or system, often requiring immediate attention and action to address.