Investing Activities on the Statement of Cash Flows Are

question 40

Multiple Choice

Investing activities on the Statement of Cash Flows are

• A) transactions with lenders, borrowing and repaying cash.
• B) transactions with stockholders, selling company stock and paying dividends.
• C) activities directly related to running the business to earn profit.
• D) buying and selling productive resources with long lives.

---

Definitions:

Financial Statement

A formal record of the financial activities and position of a business, individual, or other entity, which includes the balance sheet, income statement, and statement of cash flows.

Base Amount

The initial value or standard measure that is used as a reference point for calculations, comparisons, or adjustments.

Acid-test Ratio

The acid-test ratio is a financial metric used to assess a company's ability to pay off its short-term liabilities with its most liquid assets, excluding inventory.

Short-term Investments

Financial assets that are expected to be converted into cash or sold within a year or the operating cycle, whichever is longer.