Black Corporation Entered into the Following Transactions: • the Accrual

Multiple Choice

Black Corporation entered into the following transactions: • The accrual of wages and salaries expense.
• The cash sale of equipment for a loss.
• The cash payment in advance for a one-year insurance policy.
Which of the following statements is correct with respect to determining Black's cash flows from operating activities on the statement of cash flows?

A) The accrual of wages and salaries expense resulted in a cash outflow.
B) The purchase of a one-year insurance policy resulted in a cash inflow.
C) The cash sale of equipment for a loss resulted in a cash inflow.
D) The accrual of wages and the equipment loss both resulted in cash outflows.