Which of the Following Statements About Cash Flows from Investing

question 58

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 payable is reported as a cash inflow from investing activities.

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Definitions:

Causation

The relationship between cause and effect, where one event (the cause) directly results in another event (the effect).

Normative Analysis

An approach in economics that involves value judgments or opinions about what the economy should be like or what particular policy actions should be recommended.

Macroeconomics

A branch of economics that deals with performance, structure, behavior, and decision-making of an economy as a whole, rather than individual markets.

Microeconomics

The branch of economics that focuses on the actions of individuals and industries, like the dynamics between buyers and sellers, borrowers and lenders.