Regarding cash flow,which of the following is not correct?
A)Insurance payments are a cash outflow.
B)Investing in stock is a cash outflow.
C)Buying items on sale is a cash inflow.
D)Salary is a cash inflow.

Question

Quizplus · Accepted Answer

Buying items on sale is not a cash inflow because cash inflow refers to money coming into a business, while buying items on sale refers to money going out of a business. A is correct because insurance payments are a cash outflow, representing money leaving the business. B is correct because investing in stocks is also a cash outflow, as it involves giving money to another entity (the stock issuer) in exchange for ownership in that entity. D is correct because salary is a cash inflow, representing money coming into the business as compensation for labor.

Regarding Cash Flow,which of the Following Is Not Correct