Which of the Following Would Not Be a Cash Flow

question 26

Multiple Choice

Which of the following would not be a cash flow from investing activities? 

• A) Sale of a patent.
• B) Collection of interest revenue on a long-term note receivable.
• C) Collection of principal of a note receivable.
• D) Purchase of long-term investments.

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Definitions:

Post-closing Trial Balance

A summary listing of all company accounts that remain after closing entries have been made, serving as a check that debits equal credits.

Owner's Capital Account

An equity account on the balance sheet representing the total amount of investment made by the owner(s) in the company, including profits retained in the business.

Balance Sheet Accounts

These are the financial accounts that appear on the balance sheet, including assets, liabilities, and equity accounts, representing the financial position of a company at a specific point in time.

Permanent Accounts

Financial accounts whose balances are carried over into the next accounting period, including assets, liabilities, and equity accounts.