Asked by Gillian Sanders on May 31, 2024

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Which of the following transactions will result in a decrease in cash flow from investments?

A) acquisition of another business
B) capital gain from sale of a subsidiary
C) decrease in net investments
D) sale of equipment

Capital Gain

The increase in value of an asset or investment from its purchase price to its selling price.

Cash Flow From Investments

Financial statement item that reports the net amount of money used for or generated from the company's investment purchases and sales during a specific period.

Acquisition

The process of acquiring control of another company by purchase or exchange of equity.

  • Comprehend the importance of cash flow originating from various activities (operating, investing, financing) in ensuring a company's sustainability.
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ZK
Zybrea KnightJun 03, 2024
Final Answer :
A
Explanation :
Acquisition of another business involves the outflow of cash to pay for the acquisition, which results in a decrease in cash flow from investments.