Which of the following would be reported as a cash outflow from investing activities?
A) Issuance of bonds.
B) Purchase of land.
C) Payment of dividends.
D) Retirement of common stock.

Question

Quizplus · Accepted Answer

Purchase of land is a cash outflow from investing activities as it involves the acquisition of a long-term asset with the intention of generating revenue or increasing future returns.

Issuance of bonds (A), Payment of dividends (C), and Retirement of common stock (D) are all related to financing activities, which involve either raising money from investors or returning money to them.

Which of the Following Would Be Reported as a Cash