Which of the following would be reported as a cash outflow from investing activities?
A)Donating an old piece of equipment to charity.
B)Repaying the bond principal.
C)Buying another company's bonds with cash.
D)Paying for an investment asset by issuing company shares.

Question

Quizplus · Accepted Answer

Buying another company's bonds with cash would be reported as a cash outflow from investing activities. Donating equipment to charity and repaying bond principal would be reported as cash outflows from operating activities, while paying for an investment asset by issuing company shares would be reported as a cash inflow from financing activities.

Which of the Following Would Be Reported as a Cash