Which one of the following represents a cash outflow from a corporation?
A) Issuance of new securities
B) Payment of dividends
C) New loan proceeds
D) Receipt of tax refund
E) Initial sale of common stock

Question

Quizplus · Accepted Answer

Payment of dividends represents a distribution of funds from the corporation to its shareholders, resulting in a cash outflow from the corporation. Issuance of new securities (A) and new loan proceeds (C) are sources of cash inflow for the corporation, while receipt of tax refund (D) and initial sale of common stock (E) may or may not result in cash inflows, depending on the specific circumstances.

Which One of the Following Represents a Cash Outflow from a Corporation