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 Income

The total earnings of a company after subtracting all expenses, taxes, and losses.

Buildings

Physical structures used for business operations or investment, considered as fixed assets on a company's balance sheet.

Partial Equity Method

An accounting method that recognizes the initial investment at cost and incorporates the investor's share of the investee's net income or losses to some extent, not fully as in the full equity method.