alleryStart learning →A lump sum can be either a receipt, meaning an inflow, or a payment, meaning an:
AOverhead
BObligation
COutflow
DOverdraft
Answer & Solution
Correct answer: C. Outflow
1. Cash moves in two directions.
2. The most basic transaction involves a one-time amount of cash.
3. It can be a receipt, which is an inflow.
4. It can also be a payment, which is an outflow.
_Source: OpenStax Principles of Finance (CC BY 4.0), Ch 7 'Time Value of Money I: Single Payment Value'_
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