An outflow of cash from an investing activity would be:
A) purchasing treasury stock.
B) issuing notes payable.
C) paying cash dividends to stockholders.
D) making loans to third parties.

Question

Quizplus · Accepted Answer

Making loans to third parties is an investing activity, and any cash given out in this manner would represent an outflow. Choices A and C are both financing activities, while choice B could be either a financing or operating activity depending on the circumstances.

An Outflow of Cash from an Investing Activity Would Be