πŸ“’ Too many exams? Don’t know which one suits you best? Book Your Free Expert πŸ‘‰ call Now!

  • google app store apple app store
  • βœ–

      Question

      Which of the following would be considered a 'cash-flow

      item from an "investing" activity'?
      A Cash outflow to the government for taxes. Correct Answer Incorrect Answer
      B Cash outflow to purchase bonds issued by another company. Correct Answer Incorrect Answer
      C Cash outflow to shareholders as dividends. Correct Answer Incorrect Answer
      D Cash outflow to payment of interest on bonds Correct Answer Incorrect Answer
      E None of the above Correct Answer Incorrect Answer

      Solution

      Cash outflows related to the purchase of bonds issued by another company are considered as cash-flow items from an "investing" activity on the cash flow statement. Investing activities involve the acquisition or disposal of long-term assets and other investments, such as stocks, bonds, and real estate.

      Practice Next
      ask-question