Which of the Following Would Cause an Outflow of Cash

question 177

Multiple Choice

Which of the following would cause an outflow of cash?

• A) Issuance of long-term debt to finance a construction project
• B) Collection on an account receivable
• C) Cash purchase of a long-term marketable security
• D) Sale of a long-term asset for cash

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Definitions:

Real Wage

The purchasing power of an individual's income, accounting for inflation and reflecting how many goods and services can be bought.

Nominal Wages

Wages paid to employees not adjusted for changes in price level, representing the monetary value of earnings.

Real Wages

Wages adjusted for inflation, reflecting the purchasing power of income and the real value of earnings over time.

Price Level

A gauge of the mean prices for goods and services in an economy during a certain period.