Which of the following is an inflow of cash?
A) Funds spent in normal business operations
B) The purchase of a new factory
C) The sale of the firm's bonds
D) The retirement of the firm's bonds

Question

Quizplus · Accepted Answer

The sale of the firm's bonds would result in an inflow of cash, as the firm would receive cash from investors who purchase the bonds. A is incorrect because spending funds in normal business operations represents an outflow, D is incorrect because retiring bonds means the firm is paying off debt and therefore represents an outflow, and B is incorrect because purchasing a new factory would also represent an outflow of cash.

Which of the Following Is an Inflow of Cash