Which of the Following Is Reported as an Investing Activity

question 53

Multiple Choice

Which of the following is reported as an investing activity in the statement of cash flows?

• A)Sale of a subsidiary.
• B)Issuance of a long-term promissory note.
• C)Sale of treasury stock.
• D)Purchase of highly liquid,short-term investments with excess cash.

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Definitions:

Contra Equity

An equity account that decreases the total equity of a company, often related to withdrawals or deductions from the total equity.

Common Stock Outstanding

The shares of a corporation's stock that are issued and held by investors, excluding treasury shares.

Common Stock Issued

Shares of a company that have been allocated to shareholders, representing ownership interest in the corporation.

Cumulative

Refers to an overall amount that includes all accumulated adjustments, additions, charges, and other relevant items over a period.