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.

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Definitions:

Cash Payments

Outflows of cash from a company to settle debts, purchase goods or services, or make investments.

Cash Account

An account recording the amounts of cash received and paid out in transactions.

Credit

A financial term denoting the provision of money, goods, or services with the expectation of future payment.

Consuming Goods

The action of using up goods or products, thereby reducing inventory.