Which of the following would cause an inflow of cash?
A) Payment of a long-term bond
B) Sale for cash of a short-term investment at its cost
C) Payment of accounts payable
D) Repurchase of common stock for cash
E) Accrual of a dividend

Question

Quizplus · Accepted Answer

Selling a short-term investment for cash at its cost will result in an inflow of cash. Option A results in an outflow of cash as the long-term bond is paid off. Option C also results in an outflow of cash as accounts payable are paid. Option D results in an outflow of cash as cash is used to repurchase shares. Option E is an accounting adjustment and does not involve an actual inflow of cash.

Which of the Following Would Cause an Inflow of Cash