Which of the Following Cash Flows Results from an Investing

question 1

Multiple Choice

Which of the following cash flows results from an investing activity?

• A)Making a payment on a loan
• B)Receiving a cash dividend on an investment in another company
• C)Selling an investment in another company
• D)Receiving payment from a customer for last month's accounts receivable

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Definitions:

Salaries Expense

The total amount paid to employees for services rendered during a specific period, classified as an operating expense.

Residual Value

The estimated salvage value of an asset at the end of its useful life, used in calculating depreciation expense.

Depreciation Expense

Depreciation Expense represents the systematic allocation of the cost of a tangible asset over its useful life, reflecting the decrease in value over time.

Accumulated Depreciation

Represents the total amount of depreciation expense that has been recorded for an asset since it was acquired, reflecting its decrease in value over time.