Which of the following would be included in cash flows from investing activities?
A)Cash proceeds from sales.
B)Cash received from an issuance of bonds.
C)Dividends paid to stockholders.
D)Cash used to purchases of equipment.

Question

Quizplus · Accepted Answer

Cash used to purchases of equipment is included in cash flows from investing activities, as it represents a cash outflow for the purchase of a long-term asset that will be used in the business. A) Cash proceeds from sales would be included in cash flows from operating activities. B) Cash received from an issuance of bonds would be included in cash flows from financing activities. C) Dividends paid to stockholders would be included in cash flows from financing activities.

Which of the Following Would Be Included in Cash Flows