Which of the Following Would Not Be a Cash Flow

question 97

Multiple Choice

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

• A)Purchase of long-term investments.
• B)Sale of a patent.
• C)Collection of principal on a long-term note receivable.
• D)Collection of interest revenue on a long-term note receivable.

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Definitions:

Variable Costing

An accounting method that only considers variable costs in the calculation of the cost of goods sold, excluding fixed costs.

Common Fixed Expenses

Operating expenses that do not vary with production volume, such as salaries and rent, shared across multiple products or departments.

Net Operating Income

A financial metric that calculates a company's operational profitability, excluding interest and taxes.

Income Statement

A financial statement that reports a company's financial performance over a specific accounting period, detailing revenues, expenses, and profits or losses.