Which of the following represent cash outflows from a corporation?
I.issuance of securities
II.payment of dividends
III.new loan proceeds
IV.payment of government taxes
A)I and III only
B)II and IV only
C)I and IV only
D)I, II, and IV only
E)II, III, and IV only

Question

Quizplus · Accepted Answer

I. Issuance of securities represents a cash inflow rather than an outflow for a corporation as it involves raising capital.
II. Payment of dividends is a cash outflow as it involves distributing profits to shareholders.
III. New loan proceeds are a cash inflow as they represent borrowing money from lenders.
IV. Payment of government taxes is a cash outflow as it involves paying taxes to the government. Therefore, only options II and IV represent cash outflows from a corporation. Hence, the correct answer is B.

Which of the Following Represent Cash Outflows from a Corporation