Which of the following financing activities results in a cash outflow?
A) purchase of long-term investments.
B) collecting accounts receivable.
C) payment of dividends.
D) issuance of bonds.

Question

Quizplus · Accepted Answer

Payment of dividends results in a cash outflow as cash is being distributed to shareholders. The other options (A, B, and D) result in a cash inflow: purchase of long-term investments can result in future cash inflows, collecting accounts receivable brings in cash that was owed, and issuance of bonds bring in cash from investors.

Which of the Following Financing Activities Results in a Cash