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    Question

    Investing cash flows most likely reflect changes in

    which of the balance sheets’ components?
    A Non-current assets Correct Answer Incorrect Answer
    B Non-current liabilities and equity Correct Answer Incorrect Answer
    C Current assets and current liabilities Correct Answer Incorrect Answer
    D Equity Correct Answer Incorrect Answer
    E None of the above Correct Answer Incorrect Answer

    Solution

    Investing cash flows are most likely linked to a firm’s noncurrent assets. Operating cash flows are associated with current assets and liabilities. Noncurrent liabilities and equity are related to financing cash flows.

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