If a firm's statement of cash flows shows that cash was used for investments, which of the following would seem most likely?

Question

Quizplus · Accepted Answer

If cash was used for investments, it means the firm spent money on acquiring new assets or properties, and one of the most likely investments is new machines or equipment. Increasing inventory or repurchasing common stock wouldn't be considered investments, and paying cash dividends would decrease cash flow from financing activities.

If a Firm's Statement of Cash Flows Shows That Cash