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:

Business Combination

The process of merging or acquiring another company to expand operations, diversify, or achieve other strategic objectives.

Equity Method

An accounting technique used to record investments in other companies, where the investment is represented as the investor's share of the associate's net assets, and the investor's income statement reflects their share of the associate's profits or losses.

Voting Shares

Shares of a company that grant the shareholder the right to vote on company matters.

Patent

An exclusive right granted for an invention, which allows the patent owner to exclude others from making, using, or selling the invention for a certain period of time.