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Which of the following does not represent an outflow of cash and therefore would not be...



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?
  • purchase of noncurrent assets
  • payment of cash dividends
  • purchase of treasury stock
  • discarding an asset that had been fully depreciated 
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Answer #1

Discarding of an asset that had been fully depreciated does not represent are outflow of cash and therefore would not be reported on statement of cash flows as use of cash.

When an asset is discarded, no cash is received or paid. Hence, it is a non cash activity.

In all other transactions given in the question, there is an outflow of cash.

Fourth option is correct option.

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