In Preparing a Company's Statement of Cash Flows for the Most

question 153

Multiple Choice

In preparing a company's statement of cash flows for the most recent year,the following information is available:
Net cash flows from investing activities for the year were:

• A)$134,000 of net cash used by investing activities.
• B)$134,000 of net cash provided by investing activities.
• C)$120,000 of net cash used by investing activities.
• D)$252,000 of net cash used by investing activities.
• E)$221,000 of net cash provided by investing activities.

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Definitions:

Economic Benefits

Benefits that can be quantified in monetary terms and usually include profits, revenues, and savings.

Future Cash Inflows

Expected receipts of cash in the future from investments, operations, or financing activities.

Asset's Value

The worth of an asset, calculated based on factors such as market value or depreciation.