Which of the following statements is true?
A)Purchase of equipment is a cash outflow for investing activities.
B)Proceeds from the sale of bonds is a cash inflow from investing activities.
C)Cash paid for accounts payable is a cash outflow for financing.
D)Sale of treasury stock is a cash inflow from investing activities.

Question

Quizplus · Accepted Answer

Purchase of equipment is a capital expenditure and is a cash outflow for investing activities. 
Option B is incorrect because proceeds from the sale of bonds would be a cash inflow from financing activities. 
Option C is incorrect because payment of accounts payable is a cash outflow for operating activities. 
Option D is incorrect because sale of treasury stock would be a cash inflow from financing activities.

Which of the Following Statements Is True