Which of the following would not be a cash flow from investing activities?
A) Sale of a patent.
B) Collection of interest revenue on a long-term note receivable.
C) Collection of principal of a note receivable.
D) Purchase of long-term investments.

Question

Which of the following would not be a cash flow from investing activities? 
A) Sale of a patent.
B) Collection of interest revenue on a long-term note receivable.
C) Collection of principal of a note receivable.
D) Purchase of long-term investments.

Quizplus · Accepted Answer

Collection of interest revenue on a long-term note receivable is a cash flow from operating activities, not investing activities which includes purchasing and selling long-term assets such as property, plant, and equipment, and investments in stocks and bonds. Options A, C, and D are all cash flows from investing activities as they involve the sale of a long-term asset, receiving cash from a note receivable, and purchasing a long-term investment respectively.

Which of the Following Would Not Be a Cash Flow