Which of the Following Would Not Be a Cash Flow

question 26

Multiple Choice

Which of the following would not be a cash flow from investing activities? 

• A) Sale of a patent.
• B) Collection of interest revenue on a long-term note receivable.
• C) Collection of principal of a note receivable.
• D) Purchase of long-term investments.

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Definitions:

Long-Term Effects

The impacts or results of a policy, action, or event that manifest or become apparent over a lengthy period.

Pollution

The introduction of contaminants into the natural environment that cause adverse change and harm to ecosystems and human health.

Negative Externality

A cost experienced by a third party who did not choose to incur that cost, often related to environmental, social, or health issues.

Uncompensated Cost

Costs that occur when an action has effects, positive or negative, on third parties without those parties being compensated.