Typical Cash Flows from Investing Activities Include Each of the Following

question 104

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 accounts receivable arising from customer sales.
• C)Payments to buy intangible assets.
• D)Payments to acquire held-to maturity securities of other entities,except cash equivalents.
• E)Proceeds from the sale of equipment.

---

Definitions:

Marginal Cost

The additional cost incurred from producing one more unit of a good or service.

Competitive Market

A market structure characterized by many buyers and sellers, where no single entity has the power to influence market prices.

Profit

Profit is the financial benefit realized when the amount of revenue gained from a business activity exceeds the expenses, costs, and taxes involved in maintaining the activity.

Short-Run Equilibrium

A situation in a market where demand equals supply, resulting in a stable price level, but which may not reflect long-term market dynamics.