Which of the following statements is true?
A) A cash dividend is an operating cash outflow.
B) Cash paid to repurchase treasury stock is an investing cash outflow.
C) Cash paid to acquire stock in another company is a financing outflow.
D) Purchase of a patent is an investing cash outflow.

Question

Quizplus · Accepted Answer

The purchase of a patent is considered an investing cash outflow because it involves spending cash to acquire a long-term asset.

Which of the Following Statements Is True