If a Company Has Both an Inflow and Outflow of Cash

question 61

Multiple Choice

If a company has both an inflow and outflow of cash related to property, plant, and equipment, the ______________ in the investing activities section.

• A)two cash effects must be netted and presented as one item
• B)cash inflow and cash outflow must be reported separately
• C)cash outflow is only is presented
• D)cash inflow and cash outflow can either be reported separately or presented as one item

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Definitions:

Stasis

A period or state of inactivity or equilibrium.

Stasis

A condition in which there is no movement or developmental progress, often referring to blood flow, bodily fluids, or growth.

Infarction

The obstruction of the blood supply to an organ or region of tissue, causing local death of the tissue.

Stenotic

Relating to or affected by stenosis, a condition characterized by the abnormal narrowing of a body passage or opening.