In the Preparation of a Statement of Cash Flows All

question 20

Multiple Choice

In the preparation of a statement of cash flows all of the following would be classified as investing activities except:

• A) collection of a loan from a subsidiary.
• B) purchase of a patent from an inventor.
• C) sale of plant assets.
• D) dividends received on stock held as an investment.

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Definitions:

Budgeted Unit Sales

The number of units a company anticipates selling in a future period as outlined in its budget.

Cash Collections

The process of receiving and managing the cash a company receives from its customers, sales, or other sources.

Budgeted Sales

The planned or forecasted sales for a future period, often used for planning and control purposes.

Cash Collections

The process of gathering all cash received from sales, services, or other business activities during a specified period.