Question

purchase of an asset results in......


​

Answer 1

purchase of an asset results in cash outflows.

. follow me.

Answer 2

Purchase of an asset results in Cash Outflow.

• Cash outflow is any form cash that leaves a business.
• It can be from paying salaries to workers, purchasing assets, the expense of renting an office or paying shareholder dividends.
• Cash outflow is inverse of the cash inflow, which is the cash that goes through the business.
• Purchase of an asset is a cash outflow as the business acquires the assets for its use. For example - Building or machinery.