Which of the Following Is an Outflow of Cash

By Ra_Kyra87 11 May, 2022 Post a Comment

Up to 25 cash back Which of the following is an outflow of cash. Free cash flow 3 amounted to an outflow of 52 million in the first three months of 2022 compared to an inflow of 48 million in the previous year.

Cash Flow Statement Definition And Meaning Cash Flow Statement Accounting Education Financial Accounting

In simple terms the term cash outflow describes any money leaving a business.

. Multiple Choice unpredictable fluctuations in cash flow. Cash outflow is the amount of cash that a business disburses. Cash outflow for payment to sundry creditors Companies purchase raw materials and the majority of times it is purchased on credit by the company and when the company pays back to creditors it results in the outflow of cash for the company even if purchase belongs to previous financial year.

Which of the following is an example of a cash outflow from a financing activity. Thenet cash flow from financing activities is. Equity Participation in another Entity.

The sale of the companys common stock D. Paying commissions to sales force. Which of the following is an outflow of cash.

The cash outflow from operating activities includes payments made to the suppliers of goods and services payment to employees payment for interest expense and payment of other. Purchasing of shares debentures or bonds of other companies by cash. The cash flow from operating activities refers to the cash transactions made by the company that has effects on the determination of profit or loss of the company.

The firm wishes to maintain the provision for doubtful debtors at 4 of outstanding debtors. Obvious examples of cash outflow as experienced by a wide range of businesses include employees salaries the maintenance of business premises and dividends that have to be paid to shareholders. Its the opposite of cash inflow which is the money going into the business.

The sale of equipment C. Increase in paid-in capital account d. Increase in retained earnings account Feedback.

Correct An inflow of 752900. The balance on the provision for doubtful debts account as at 11202 is Â600. Equipment rose 752900 and bonds payable rose 1 million.

The sale of equipment D. Examples are payments to employees and suppliers. Selling common stock to an investor.

Increase in treasury stock account b. A business is considered unhealthy if its cash outflow is greater than its cash inflow. An inflow of 1 million.

Which of the following is an outflow of cash. Multiple Choice An inflow of 135 million. Increase in common stock account c.

For fixed assets and loans outflows are related to both balance sheet movements AND PL expenses. As at 3112202 there are outstanding debtors totaling Â12000. A toy store with a calendar year-end is likely to have.

As you can see outflows are not always an expense. The correct entry in the account to record this would be. The payment of cash dividends C.

Examples are loans to other entities or expenditures made to acquire fixed assets. The sale of the companys common stock Which of the following would represent a source of funds and indirectly an increase in cash balances. Selling goods to customers.

The opposite of cash outflow is cash inflow which refers to the money coming. An outflow of 350000. The following are some of the examples of cash outflow from the investing activities of the business.

The reasons for these cash payments fall into one of the following classifications. Purchase of non current assets like property plant and equipment for the business by cash. This could be from paying staff wages the cost of renting an office or from paying dividends to shareholders.

Which one of the following represents a cash outflow from a corporation. Cash outflows from financing activities include the payment of cash dividends the acquisition of treasury stock and the repayment of amounts borrowed. Which of the following is an outflow of cash.

The sale of equipment D. The purchase of the budding is investing cash outflow and the issuance of debentures is financing cash inflow while the issuance of shares is investing cash inflow. Cash outflow from investing activities.

The payment of cash dividends. Which of the following would indicate a cash outflow to appear in the financing activities section of the statement of cash flows. The payment of cash dividends.

Multiple Choice O Profitable operations O O The sale of equipment O The sale of the companys common stock The payment of cash dividends. The sale of the companys common stock B. Both the interest and the principle payments are cash outflows but only the interest expense is a cost known as the cost of borrowing money.

Finance questions and answers. Both payment of dividends Government taxes. The purchase of the building is investing cash outflow and the issuance of.

Cash outflow is any money leaving a business. Buying equipment for use in manufacturing. Payment of government taxes.

Which one of the following represents a cash outflow from a corporation.

Is Cash Flow Equal To Profit Cash Flow Statement Business Valuation Cash Flow