Which of the Following Appears in the Investing Activities Section

question 73

Multiple Choice

Which of the following appears in the investing activities section of the statement of cash flows?

• A)Cash inflow from interest revenue
• B)Cash inflow from the issuance of common stock
• C)Cash outflow for the payment of dividends
• D)Cash outflow for the purchase of land

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Definitions:

Straight Bond Value

The present value of a bond's future interest payments plus the value of its principal, assuming it does not come with any special features like options.

Conversion Value

The monetary value of a convertible security if it were converted into shares of the underlying company at the current market price.

Convertible Bond

A bond which offers the option to be exchanged for a specific number of the issuing company's stock at certain periods throughout its duration, typically at the option of the person holding the bond.