Which of the following transactions would not create a cash flow?
A)The company purchased some of its own shares from a shareholder.
B)Amortization of patent for the period.
C)Payment of a cash dividend.
D)Sale of equipment at book value (i.e.no gain or loss).

Question

Quizplus · Accepted Answer

Amortization of a patent is a non-cash expense and does not impact cash flow. The other options all involve actual cash inflows or outflows.

Which of the Following Transactions Would Not Create a Cash