Which of the following does not represent an outflow of cash and therefore would not be reported on the statement of cash flows as a use of cash?
A) purchase of noncurrent assets
B) purchase of treasury stock
C) discarding an asset that had been fully depreciated
D) payment of cash dividends

Question

Quizplus · Accepted Answer

Discarding an asset that had been fully depreciated does not involve the use of cash. It is a non-cash transaction and therefore would not be reported on the statement of cash flows. The other options (A, B, and D) all involve cash outflows and would be reported as uses of cash on the statement of cash flows.

Which of the Following Does Not Represent an Outflow of Cash