Which of the Following Cash Flows Results from an Investing

question 44

Multiple Choice

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

• A)Paying rent on a crane to be used to move warehouse equipment
• B)Purchasing inventory for cash
• C)Purchasing a new forklift
• D)Purchasing 5% of the company's own outstanding common stock

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Definitions:

Unintentional

An action or outcome occurring without deliberate intent or plan.

Misrepresentation

A false statement of fact made by one party to another, which has the effect of inducing that party into a contract.

Actual Fraud

Actual fraud refers to intentional deception or misrepresentation made by one party with the knowledge of its falsehood, intending to persuade another party to part with something of value or to surrender a legal right.

Constructive Fraud

A situation where dishonesty is presumed by the nature of the transaction, despite the absence of intent to deceive.