If a company reports a negative dollar amount under cash flows from investing activities,a possible explanation is that:
A)it has purchased a significant amount of equipment.
B)its expenses are greater than its revenues.
C)the market value of its stock has gone down.
D)it has paid a large cash dividend to its stockholders.

Question

Quizplus · Accepted Answer

Investing activities involve buying and selling productive resources with long lives (such as buildings,land,equipment,and software),purchasing investments,and lending to others.A cash purchase of a long-lived asset would be reported as a negative number representing an outflow of cash.

If a Company Reports a Negative Dollar Amount Under Cash