Typical Cash Flows from Investing Activities Include

question 141

Multiple Choice

Typical cash flows from investing activities include:

• A) Payments to purchase property, plant and equipment or other productive assets (excluding inventory).
• B) Proceeds from collecting the principal amount of notes receivable arising from customer sales.
• C) Proceeds from collecting the principal amount of notes receivable arising from intercompany transactions.
• D) Payments to acquire held-to maturity securities of other entities, except cash equivalents.
• E) Proceeds from the sale of equipment.

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Definitions:

Protective Put

An options strategy where an investor purchases a put option for an existing stock position to limit potential losses.

Listed Put Option

A put option that is traded on an official exchange, giving the holder the right but not the obligation to sell a specific asset at a set price before the option expires.

Exercise Price

The price at which the holder of an options contract can buy or sell the underlying asset.

Stock Split

A corporate action that increases the number of a corporation's outstanding shares by dividing each share, which in turn diminishes its price.