Typical Cash Flows from Investing Activities Include Each of the Following

question 104

Multiple Choice

Typical cash flows from investing activities include each of the following except:

• A)Payments to purchase property,plant and equipment or other productive assets (excluding inventory).
• B)Proceeds from collecting the principal amount of accounts receivable arising from customer sales.
• C)Payments to buy intangible assets.
• D)Payments to acquire held-to maturity securities of other entities,except cash equivalents.
• E)Proceeds from the sale of equipment.

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Definitions:

Outstanding

Refers to shares that are currently owned by investors, including those held by public investors, institutional investors, and company insiders.

Cumulative

Referring to the total amount aggregated over a period of time.

Noncumulative

Noncumulative refers to a type of preferred stock where dividends do not accumulate if they are not declared or paid in a given dividend period.

Dividends in Arrears

Dividends on cumulative preferred stock that have not been paid in the period they are due.