Question

    Which of the following is an example of a cash outflow

    from operating activities?
    A Collection of accounts receivable Correct Answer Incorrect Answer
    B Payment of accounts payable Correct Answer Incorrect Answer
    C Sale of equipment Correct Answer Incorrect Answer
    D Issuance of common stock Correct Answer Incorrect Answer

    Solution

    Payment of accounts payable is an operating activity that represents a cash outflow.

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