Cash flows from investing activities include cash:
A)inflows and outflows reflecting revenues and expenses.
B)outflows from the sale of long-term investments.
C)inflows from the sale of long-term investments.
D)inflows from the sale of a company's own stock to its stockholders.

Question

Quizplus · Accepted Answer

Cash flows from investing activities include cash inflows and outflows related to the purchase and sale of long-term assets such as property, plant, and equipment, as well as investments such as stocks and bonds. Therefore, option C, which describes inflows from the sale of long-term investments, is the best choice. Options A, B, and D are incorrect because they do not accurately describe cash flows from investing activities.

Cash Flows from Investing Activities Include Cash