Which of the following is a cash outflow?
A) a new issue of bonds
B) a decrease in accounts receivable
C) an increase in plant
D) an increase in accounts payable

Question

Which of the following is a cash outflow?​
A) ​a new issue of bonds
B) ​a decrease in accounts receivable
C) ​an increase in plant
D) ​an increase in accounts payable

Quizplus · Accepted Answer

An increase in plant represents a cash outflow as it involves the purchase of a capital asset, which requires an expenditure of funds.

Note: 
A) ​A new issue of bonds represents a cash inflow as the company receives funds from investors in exchange for the bonds. 
B) A decrease in accounts receivable represents a cash inflow as customers are paying off their outstanding debts. 
D) An increase in accounts payable does not represent a cash outflow, as accounts payable represent debts that a company owes to its suppliers, which are typically paid at a later date.

Which of the Following Is a Cash Outflow?​

Which of the Following Is a Cash Outflow?