Which of the Following Would Not Be a Component of Cash

question 48

Multiple Choice

Which of the following would not be a component of cash flows from investing activities?

• A)Sale of land.
• B)Purchase of securities.
• C)Purchase of equipment.
• D)Dividends paid.Dividends paid is not a component of cash flow from investing; it is a component of cash flow from financing.The other items are all components of cash flow from investing.

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Definitions:

Worksheet

A document or tool used by accountants to record and organize financial data, facilitating the preparation of financial statements.

Financial Statements

Formal records of the financial activities and position of a business, including income statement, balance sheet, and cash flow statement.

Multiple Column Form

A document layout that uses more than one column to organize information, often used in accounting to display accounts and figures in a structured manner.

Closing Entries

Journal entries made at the end of an accounting period to transfer the balances of temporary accounts to permanent accounts and prepare the company's books for the next period.