The net change in cash ﬂow from investing activities equals:
A)the acquisition of current assets plus any interest payable and dividends paid minus the sales of current
Assets.
B)the addition of nom-current assets minus the sales of non-current assets divided by any security
Investments.
C)any security investments minus the sales of non-current assets divided by the acquisition of any non-current
Assets.
D)the acquisition of non-current assets plus any security investments minus the sales of non-current assets.
E)the acquisition of current assets plus any security investments minus the sales of current assets.

Question

Quizplus · Accepted Answer

The net change in cash flow from investing activities is the result of all investing activities undertaken by a company during a particular period, including the acquisition and sale of non-current assets and any security investments made. Hence, the correct formula for calculating the net cash flow from investing activities is the acquisition of non-current assets plus any security investments minus the sales of non-current assets. Option D is the only choice that accurately reflects this formula.

The Net Change in Cash ﬂOw from Investing Activities Equals