Which of the following would cause an outflow of cash?
A) Issuance of long-term debt to finance a construction project
B) Collection on an account receivable
C) Cash purchase of a long-term marketable security
D) Sale of a long-term asset for cash

Question

Quizplus · Accepted Answer

Cash purchase of a long-term marketable security would cause an outflow of cash as it involves paying cash to acquire an investment.

Answer: D
 Sale of a long-term asset for cash would also cause an outflow of cash as the asset is being exchanged for cash.

Therefore, the correct choices are C and D.

Which of the Following Would Cause an Outflow of Cash