Which of the following is considered a use of cash on the statement of cash flows?
A)Purchase of equipment
B)Sale of Amazon's stock held as an investment
C)Issuance of corporate stock
D)Receipt of interest on savings account

Question

Quizplus · Accepted Answer

Purchase of equipment involves paying cash, therefore it is considered a use of cash on the statement of cash flows.

B) Sale of Amazon's stock held as an investment is considered a cash inflow from investing activities, not a use of cash.

C) Issuance of corporate stock is considered a cash inflow from financing activities, not a use of cash.

D) Receipt of interest on savings account is considered a cash inflow from operating activities, not a use of cash.

Which of the Following Is Considered a Use of Cash