Which of the Following Is Reported as a Cash Flow

question 43

Multiple Choice

Which of the following is reported as a cash flow from investing activities?

• A)Cash received from dividends earned.
• B)Purchasing land in exchange for common stock.
• C)Selling a long-term investment at a loss for cash.
• D)Cash received from interest earneD.The investing cash flows section of the cash flow statement includes cash flows from the sale of investments.

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Definitions:

Investment Demanded

Investment demanded refers to the total amount of spending by businesses and individuals on capital goods like machinery, buildings, and technology, to increase future productivity.

Interest Rate

The percentage of a sum of money charged for its use, often expressed as an annual percentage.

Uncertainty

The lack of complete certainty in situations, often due to incomplete information, that affects decision-making processes in economics and finance.

Market Interest Rates

The rates at which borrowers and lenders conduct transactions in the open market, influenced by the supply and demand for credit, inflation, and central bank policies.