Negative Cash Flow from Investing Activities on the Statement of Cash

question 16

Multiple Choice

Negative cash flow from investing activities on the statement of cash flows means that a company has ________.

• A)paid a large cash dividend to shareholders
• B)paid more for operating expenses than it collected from customers
• C)sold additional shares of common stock
• D)bought additional property,plant and equipment

---

Definitions:

Exact Simple Interest

Interest calculated linearly on the principal amount, where the calculation is based precisely on the time period involved.

365-Day Year

A method of calculating interest that assumes all years have 365 days, used in some financial contexts.

Ordinary Simple Interest

Interest calculated on the principal amount of a loan or deposit, based solely on the principal, rate, and time.

360-Day Year

A method used in accounting and finance that assumes a year has 360 days to simplify interest calculations.