Which of the following is an example of a cash outflow from an investing activity?
A)Payment of cash for treasury stock.
B)Payment of cash for the purchase of land.
C)Payment of cash for inventory.

Question

Quizplus · Accepted Answer

Payment of cash for the purchase of land is an example of cash outflow from an investing activity because it involves the acquisition of a long-term asset that will be used to generate future revenue. Payment for treasury stock falls under financing activities, and payment for inventory falls under operating activities.

Which of the Following Is an Example of a Cash