All of the following represent cash outflows to the firm except
A) Taxes.
B) Interest payments.
C) Dividends.
D) Purchase of plant and equipment.
E) Depreciation.

Question

Quizplus · Accepted Answer

Depreciation is a non-cash expense that represents the wear and tear of an asset over time. While it may be recorded as an expense on the income statement, no actual cash outflow is associated with it. Taxes, interest payments, dividends, and purchase of plant and equipment all represent cash outflows to the firm.

All of the Following Represent Cash Outflows to the Firm