Which of the following statements about cash flows from investing activities is correct?
A)The proceeds from sales of investments are reported as cash inflows from investing activities.
B)Cash flows from investing activities are calculated by making adjustments to net income.
C)Cash paid to acquire long-lived assets is reported as a cash inflow from investing activities.
D)Cash received from issuing a long-term note payable is reported as a cash inflow from investing activities.

Question

Quizplus · Accepted Answer

Cash flows from investing activities are the cash inflows and outflows related to the purchase and disposal of investments and long-lived assets.Cash flows from operating (rather than investing)activities are calculated by making adjustments to net income.Cash paid to acquire long-lived assets is reported as a cash outflow (rather than an inflow)from investing activities.Cash received from issuing a long-term note payable is reported as a cash inflow from financing (rather than investing)activities.

Which of the Following Statements About Cash Flows from Investing