Which of the Following Is a Cash Flow from an Investing

question 32

Multiple Choice

Which of the following is a cash flow from an investing activity?

• A) Payment for advertising
• B) Cash receipt from a customer for a previous credit sale
• C) Cash received from sale of equipment
• D) Payment of dividends

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Definitions:

Account Balances

The amounts of money present in or owed on a company's accounts at any given time.

Capital

Capital refers to the financial resources or assets that are used to fund operations, invest in the business, or cover expenses.

Profit and Loss

A financial statement that summarizes revenues, costs, and expenses incurred during a specific period, typically used to assess a company's financial performance.

Liquidation Transactions

Financial operations associated with winding up a company's affairs, selling off its assets, and distributing the proceeds to creditors and shareholders.