We can condense the items that require cash outflow into basic categor

We can condense the items that require cash outflow into basic categories. Which of the below is a basic category?

A) Wages (but not commissions)
B) Accounts receivable
C) Long-term financing expenses (interest payments, dividend payments, issuing costs of debt and equity)
D) All of these

ANSWER

Answer: C
Explanation: C) We can condense the items that require cash outflow into four basic categories: accounts payable for materials and supplies; wages, taxes, and other operating expenses of the business; capital expenditures; and long-term financing expenses (interest payments, dividend payments, issuing costs of debt and equity).