Which of the Following Transactions Is Not Reported in the Statement

question 71

Multiple Choice

Which of the following transactions is not reported in the statement of cash flows as a cash flow from investing activities?

• A)Selling a depreciable asset for cash at a loss.
• B)Purchasing a patent using cash.
• C)Purchasing land in exchange for common stock.
• D)Purchasing shares of common stock of another company using cash.

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Definitions:

Market Index

A statistical measure that tracks the performance of a specific basket of stocks representing a particular market or sector.

Arbitrage Opportunity

The chance to buy an asset at a low price in one market and simultaneously sell it at a higher price in another market to make a risk-free profit.

Zero-Investment Portfolio

A portfolio strategy that involves creating a position without the need for initial capital by taking both long and short positions in stocks or other securities.

Net Investment

The total amount spent by a company on capital assets, such as plants and machinery, minus depreciation.