Cash flows are affected by financial planning decisions.Which of the following is not correct?
A) Insurance payments are a cash outflow
B) Investing in stock is a cash outflow
C) Buying on time results in a cash inflow
D) Income is a cash inflow

Question

Quizplus · Accepted Answer

Buying on time refers to using credit, which results in a cash outflow when payments are made towards the debt. Therefore, it does not result in a cash inflow. The other options are correct - insurance payments and investing in stock are cash outflows, while income is a cash inflow.

Cash Flows Are Affected by Financial Planning Decisions