For the Past Two Years, Monroe Corporation's Statement of Cash

question 117

Multiple Choice

For the past two years, Monroe Corporation's statement of cash flows has shown net cash used by investing activities.Which of the following choices could explain this result?

• A)Selling of inventory on credit in excess of collections from customers
• B)Sales of factory equipment
• C)Purchasing investments in other company's stock
• D)Issuance of long-term debt

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Definitions:

Limited Partner

A limited partner is an investor in a partnership who is not involved in day-to-day operations and whose liability is limited to the amount of their investment in the partnership.

Trust Funds

Financial structures set up to manage assets for the benefit of an individual or group, often with specific legal protections and objectives.

Real Estate

Property consisting of land and the buildings on it, along with its natural resources.

Legal Position

The stance or perspective held on legal matters, often determined by interpreting laws, precedences, and facts.