Question

Which one of these is a cash outflow from a corporation? Multiple Choice Tax payment Sale of common stock Issuance of debt Sale of an asset Profit retained by the firm

Answer 1

Answer:

Tax payment

Explanation:

For the corporation, the following are the cash outflows and the cash inflows

The cash inflows:

1. Sale of the common stock

2. The issuance of the debt

3. The sale of an asset

4. The profit retained by the firm

The cash outflows:

The tax payment

As the payment of the tax is made that means the cash is gone so this represent the outflow of cash