Which of the following represents an inflow of cash and therefore would be reported on the statement of cash flows?

Retirement of bond payable

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Acquisition of treasury stock

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Declaration of stock dividends

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Issuance of long-term debt

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Solution

The correct option is A Issuance of long-term debt
Funds received by a company due to sales, financing or investments.
Cash inflow are used to gauge the overall financial health of a business, and a company with a large and stable cash inflow can be considered to be a good financial position.

Examples of cash inflows are - Cash proceeds from issuing shares or other similar instruments, cash receipts from disposal of fixed assets including intangibles, cash receipts from sale of goods and rendering services.

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Similar questions

Q. Which of the following does not represent an outflow of cash and therefore would not be reported on the statement of cash flows as a use of cash?

State which fo the following would result in inflow/outflow of Cash or Cash Equivalents:
(i) Issue of fully paid bonus shares.
(ii) Writing off bad debts against the provision for Doubtful Debts.
(iii) Declaration of Final dividend.
(iv) Declaration of interim dividend.
(v) Cash Deposited into Bank.
(vi) Cash withdrawn from Bank.
(vii) Purchase fo Marketable Securities for Cash.

Q. According to accounting profession, which of the following would be considered as a cash inflow from an "investing" activity ____________.

Q. State which of the following would result in inflow/outflow or no flow of Cash and Cash Equivalents:
(a) Sale of Fixed Assets, Book Value ₹ 1,00,000 at a profit of ₹10,000.
(b) Sale of goods against cash.
(c) Purchase of machinery for cash.
(d) Purchase of Land and Building for ₹10,00,000. Consideration paid by issue of debentures.
(e) Issued fully paid Bonus Shares.
(f) Cash withdrawn from bank.
(g) Payment of Interim Dividend.
(h) Proposed Dividend.

Q. Which of the following would not be on the statement of cash flows ________________.

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