Which of the Following Would Be Classified as Investing Cash

question 133

Multiple Choice

Which of the following would be classified as investing cash flows on a statement of cash flows?
1.Acquiring a building by signing a long-term mortgage payable.
2.Lending cash to others.
3.Issuing stock for cash.
4.Purchasing long-term assets for cash.
5.Selling stock investments for cash.

• A)1,4,5.
• B)1,2,4.
• C)1,3,5.
• D)2,4,5.

---

Definitions:

Net Income

A company's financial gain after removing expenses and tax liabilities from its total revenue.

Gross Profit Rate

Gross profit expressed as a percentage, by dividing the amount of gross profit by net sales.

Common Stockholders' Equity

Common Stockholders' Equity represents the interest of common shareholders in a company, calculated as the difference between total assets and total liabilities, including preferred equity.

Inventory Turnover

An indicator of the frequency with which a business's stock is sold and replenished within a given timeframe, demonstrating the effectiveness of how inventory is handled.