accounting statement of cash flows

21672 · #1 Mar 12, 2007, 07:39 PM

Which of the following does not represent an outflow of cash and there fore would not be reported on the statement of cash flows as a use of cash?
a. Purchase of non current assets
b. purchase of treasury stock
c. discarding an asset that had been fully depreciated
d. Payment of cash dividends

Smith21000 · Mar 13, 2007, 12:41 PM

Quote:

Originally Posted by 21672

Which of the following does not represent an outflow of cash and there fore would not be reported on the statement of cash flows as a use of cash?
a. Purchase of non current assets
b. purchase of treasury stock
c. discarding an asset that had been fully depreciated
d. Payment of cash dividends

The answer is "c". Whenever dealing with cash flow items think just that "CASH FLOWS"



At Ask Me Help Desk you can ask questions in any topic and have them answered for free by our experts. To ask questions or participate in answering them you must register for a free account. By registering you will be able to: Get free answers from experts in any of our 300+ topics. Accept money for answers that you provide. Communicate privately with other members (PM). See fewer ads. Sign Up!