Which Is Not a Cash Outflow from an Operating Activity

question 49

Multiple Choice

Which is not a cash outflow from an operating activity?

• A)Payment for interest on a loan
• B)Payment to the government for taxes
• C)Payment to buy merchandise inventory
• D)Paying dividends to stockholders

Calculate the optimal percentage allocation between risky and risk-free assets to achieve a desired portfolio standard deviation.

Understand the concept and calculation of the capital allocation line and its slope.

Evaluate the impact of diversification on portfolio standard deviation.

Determine the comparative benefit of portfolio diversification across different numbers of stocks.

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Definitions:

Net Income

The total profit of a company after all expenses, including taxes and operational costs, have been subtracted from total revenue.

End-of-period Spreadsheet

A document or report prepared at the end of an accounting period that summarizes all accounts and their balances to ensure accuracy and completeness.

Working Capital

The variance between a firm's current assets and its current liabilities, showcasing the company's operational efficiency and short-term financial stability.

Current Liabilities

Obligations or debts that a company is expected to pay off within a year, such as accounts payable or short-term loans.