Positive 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)sold property,plant and equipment

Question

Quizplus · Accepted Answer

Positive cash flow from investing activities means that the company has received cash inflows from selling property, plant and equipment or other long-term assets. This is a good sign as it indicates that the company is generating cash from its investments, which can be reinvested in the business or used to pay off debt. A, B and C are incorrect as they do not reflect positive cash flow from investing activities.

Positive Cash Flow from Investing Activities on the Statement of Cash