Typical Cash Flows from Investing Activities Include Each of the Following

question 101

Multiple Choice

Typical cash flows from investing activities include each of the following except:

• A)Payments to purchase property, plant and equipment or other productive assets (excluding inventory).
• B)Proceeds from collecting the principal amount of notes receivable arising from customer sales.
• C)Proceeds from collecting the principal amount of notes receivable arising from intercompany transactions.
• D)Payments to acquire held-to maturity securities of other entities, except cash equivalents.
• E)Proceeds from the sale of equipment.

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Definitions:

Book Value

The net value of a company's assets minus its liabilities, as recorded on the balance sheet.

Poison Pill

A defensive strategy used by corporations to deter hostile takeovers by making the company less attractive to the potential acquirer.

Control

In a business context, the ability to direct the management and policies of a company, often through the ownership of a majority of shares.

Shareholders

Individuals or entities that own one or more shares of stock in a corporation, thus having partial ownership and interest in the company.