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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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