Question

purchase of an asset result in
option :- a) income b) cash inflow c) cash outflows d) lending ​

Answer 1

Answer:

c) cash outflows .....

Answer 2

Purchase results in 'cash outflows'. (option c)

• Cash outflow can also be described as expenditure or investment. It is the money spent in acquiring an external asset.
• An investment or expenditure is made either expecting a financial profit or for expansion purposes.
• For the purchase of assets, a purchase agreement is first drafted between the parties stating all the conditions of the purchase.