If a Company Has Both an Inflow and Outflow of Cash

question 23

Multiple Choice

If a company has both an inflow and outflow of cash related to property plant and equipment the

• A) two cash effects can be netted and presented as one item in the investing activities section.
• B) cash inflow and cash outflow should be reported separately in the investing activities section.
• C) two cash effects can be netted and presented as one item in the financing activities section.
• D) cash inflow and cash outflow should be reported separately in the financing activities section.