On the statement of cash flows,investing activities include:
A)obtaining cash from creditors.
B)collecting cash on long-term loans.
C)selling stock to stockholders.
D)repaying borrowed money.

Question

Quizplus · Accepted Answer

Investing activities involve the acquisition and disposal of long-term assets, such as property, plant, and equipment, and investments. Collecting cash on long-term loans is a cash inflow related to investing activities. Obtaining cash from creditors (A) and selling stock to stockholders (C) are cash inflows related to financing activities, while repaying borrowed money (D) is a cash outflow related to financing activities.

On the Statement of Cash Flows,investing Activities Include