Which of the Following Activities Are Included in the Investing

question 42

Multiple Choice

Which of the following activities are included in the investing activities section of the statement of cash flows?

• A)Activities that obtain the cash needed to launch and sustain the business
• B)Activities that increase or decrease long-term assets
• C)Activities that create revenue or expenses in the entity's major line of business
• D)None of the above

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Definitions:

Net Fixed Assets

The value of a company's property, plant, and equipment minus any depreciation, representing the company's long-term investments.

Operating Cash Flow

The cash generated from the normal operations of a business, indicative of the company's financial health.

Accounts Receivable

The money owed to a company by its customers for goods or services that have been delivered but not yet paid for.

Intangible Assets

Intangible assets are non-physical assets owned by a business, such as patents, trademarks, goodwill, and licensing agreements, known for their long-term value.