Investing activities on the statement of cash flows generate cash inflows and outflows related to borrowing from and repaying principal to creditors and completing transactions with the company's owners such as selling or repurchasing shares of common stocks and paying dividends.

Question

Quizplus · Accepted Answer

Investing activities on the statement of cash flows are related to the buying and selling of long-term assets and investments, such as property, plant, and equipment and marketable securities. The activities related to borrowing and transactions with owners are categorized under financing activities on the statement of cash flows.

Investing Activities on the Statement of Cash Flows Generate Cash