Asked by Krysteena Hudson on May 29, 2024
Verified
Collecting the principal on a loan to another company would be reported on the investing activities section of the statement of cash flows.
Investing Activities
Components of cash flow statements that show the purchase and sale of long-term investments and property, plant, and equipment.
Principal Collection
The process of receiving the original amount borrowed in a loan, excluding any interest payments.
- Master the understanding of segments and classifications within the cash flow statement.
- Correctly identify and arrange activities related to operations, financing, and investments.
- Identify the differences between cash inflows and outflows within the cash flow statement.
Verified Answer
CL
Christopher LopezJun 01, 2024
Final Answer :
True
Explanation :
Collecting principal on a loan to another company would be considered a return on investment, which falls under the investing activities section of the statement of cash flows.
Learning Objectives
- Master the understanding of segments and classifications within the cash flow statement.
- Correctly identify and arrange activities related to operations, financing, and investments.
- Identify the differences between cash inflows and outflows within the cash flow statement.
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