Which of the Following Statements About Cash Flows from Investing

question 163

Multiple Choice

Which of the following statements about cash flows from investing activities is correct?

• A)The proceeds from sales of investments are reported as cash inflows from investing activities.
• B)Cash flows from investing activities are calculated by making adjustments to net income.
• C)Cash paid to acquire long-lived assets is reported as a cash inflow from investing activities.
• D)Cash received from issuing a long-term note payable is reported as a cash inflow from investing activities.

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Definitions:

Title To Delivery

A legal concept indicating the transfer of ownership of goods from a seller to a buyer when specific conditions are met.

Small Business Loan

Financing specifically targeted to support the needs and growth of small and medium-sized enterprises, often provided with favorable terms.

Goods-In-Bailment

Items that are temporarily entrusted to another party (the bailee) for a specified purpose, under a bailment agreement, but ownership remains with the person who entrusts the goods (the bailor).

Negotiable Document

A document guaranteeing the payment of a specific amount of money, either on demand or at a set time, that can be transferred to another holder.