Cash outflows from investing activities typically include:Question 10Answera.Cash paid for interest expenseb.Cash paid for dividend paymentsc.Cash paid to acquire property, plant, and equipmentd.Cash paid to repurchase common stock
Question
Cash outflows from investing activities typically include:Question 10Answera.Cash paid for interest expenseb.Cash paid for dividend paymentsc.Cash paid to acquire property, plant, and equipmentd.Cash paid to repurchase common stock
Solution
The correct answer is c. Cash paid to acquire property, plant, and equipment.
Investing activities in a company are associated with the purchase and sale of assets, such as property, plant, and equipment. This is considered a cash outflow from investing activities because it's money going out of the business to invest in its future operations.
Option a, cash paid for interest expense, and option b, cash paid for dividend payments, are both examples of financing activities, not investing activities.
Option d, cash paid to repurchase common stock, is also a financing activity, as it involves transactions with the company's owners or creditors.
Similar Questions
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