'Purchase of a machine for cash' would result in a cash outflow from investing activities. The correct answer option is D.
Cash outflow from investing activities is one of the sections on the cash flow statement that defines how much cash has been spent in many investment-related activities in a specific time period. Investing activities include investments in securities, purchases of physical assets, or the sale of securities or assets.
Negative cash outflows is often associated with an organization's poor performance. However, negative cash outflow from investing activities might be because of the significant amounts of cash being invested in the long-term health of the organization, such as research and development.
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