Negative cash flow from investing activities on the statement of cash flows means that a company has ________.
A)paid a large cash dividend to shareholders
B)paid more for operating expenses than it collected from customers
C)sold additional shares of common stock
D)bought additional property,plant and equipment

Question

Quizplus · Accepted Answer

Negative cash flow from investing activities means that the company has spent more cash on investing activities (such as buying property, plant, and equipment) than it has received from those activities. Option A relates to cash flow from financing activities, option B to cash flow from operating activities, and option C relates to cash flow from financing activities.

Negative Cash Flow from Investing Activities on the Statement of Cash