The Company Would Report Net Cash Inflows (Outflows) from Investing

question 142

Multiple Choice

The company would report net cash inflows (outflows) from investing activities of:

• A) $(1,000)
• B) $(2,000)
• C) $5,000
• D) $7,000

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Definitions:

FOB Destination

A shipping term indicating that the seller bears freight charges and owns the goods until they are delivered to the buyer’s location.

Freight Charges

Costs associated with transporting goods from one place to another.

FOB Destination

A shipping term indicating that the seller pays for transportation and is responsible for the goods until they are received by the buyer.

FOB Shipping Point

A term indicating that the buyer assumes responsibility for the goods and the transportation costs at the point of origin.