Which of the following would be considered a use of cash on the statement of cash flows?
A)Purchase of equipment
B)Sale of Dillard'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 would require a cash outflow and thus be considered a use of cash on the statement of cash flows. Option B is a cash inflow from an investing activity, Option C is a cash inflow from a financing activity, and Option D is a cash inflow from an operating activity.

Which of the Following Would Be Considered a Use of Cash