The following cash flow activities are regarded as investing cash flows:

Question

Quizplus · Accepted Answer

Investing cash flows involve acquiring or disposing of long-term assets such as property, plant, and equipment, as well as investments in other entities. The acquisition of a subsidiary net of cash acquired is a significant investing activity that involves the purchase of another entity, which is considered a long-term investment. Income taxes paid and interest paid are operating activities, and proceeds from the issue of debentures are financing activities as they involve the issuance of debt.

The Following Cash Flow Activities Are Regarded as Investing Cash