Which of the Following Events Would Not Result in a Cash

question 98

Multiple Choice

Which of the following events would not result in a cash inflow?

• A) sale of preferred convertible stock
• B) common stock issued as a stock dividend
• C) reissuance of treasury stock
• D) loss of building destroyed by hurricane but partially reimbursed by insurance

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Definitions:

Net Capital Outflow

The difference between the domestic country's purchases of foreign assets and foreign purchases of the domestic country’s assets for a certain period.

Domestic Investment

Financial investments within a country's borders, including purchases of property, plants, and equipment.

Government Deficit

A scenario in which a government spends more than it earns over a certain timeframe, usually resulting in the need to borrow funds.

Government Budget Deficit

A financial situation where a government's expenditures exceed its revenues in a given fiscal period, leading to borrowing or debt accumulation.