Asked by Hunter McGaughey on May 13, 2024
Verified
On the statement of cash flows, the Cash flows from investing activities section would include
A) receipts from the issuance of capital stock
B) payments for dividends
C) payments for retirement of bonds payable
D) receipts from the sale of investments
Investing Activities
Financial transactions involving the purchase and sale of long-term assets and other investments not included in cash equivalents.
Statement Of Cash Flows
A report detailing how variations in income and balance sheet figures influence cash and cash equivalents.
Retirement Of Bonds Payable
The process of paying off issued bond debt before its maturity date, removing the bonds from circulation.
- Recognize the types of cash flow activities (operating, investing, and financing) along with particular transactions associated with each classification.
- Examine and compute cash movements associated with investment operations, specifically asset disposals.
Verified Answer
AS
Archie SandovalMay 18, 2024
Final Answer :
D
Explanation :
Cash flows from investing activities include receipts and payments related to the acquisition and disposal of long-term assets and investments. Option D represents receipts from the sale of investments and is the only choice that is related to investing activities. Options A and B are cash flows from financing activities, while option C represents a cash flow from operating activities.
Learning Objectives
- Recognize the types of cash flow activities (operating, investing, and financing) along with particular transactions associated with each classification.
- Examine and compute cash movements associated with investment operations, specifically asset disposals.