The correct answer is "Cash used to purchase equipment."

Investing activities in a cash flow statement refer to the changes in a company's investments and long-term assets. This includes purchases or disposals of long-term assets, such as property, plant, and equipment, as well as investment securities.

Here's a step-by-step breakdown:

1. "Cash collected from customers" is not an investing activity. It is an operating activity because it is a regular business operation.

2. "Cash received from an issuance of bonds" is not an investing activity. It is a financing activity because it involves changes in the size and composition of the company's contributed equity and borrowings.

3. "Cash dividends paid" is not an investing activity. It is a financing activity because it involves the payment of cash to the company's shareholders.

4. "Cash used to purchase equipment" is an investing activity. It involves the purchase of a long-term asset that will be used in the business, which falls under investing activities.

Question

The correct answer is "Cash used to purchase equipment."

Investing activities in a cash flow statement refer to the changes in a company's investments and long-term assets. This includes purchases or disposals of long-term assets, such as property, plant, and equipment, as well as investment securities.

Here's a step-by-step breakdown:

1. "Cash collected from customers" is not an investing activity. It is an operating activity because it is a regular business operation.

2. "Cash received from an issuance of bonds" is not an investing activity. It is a financing activity because it involves changes in the size and composition of the company's contributed equity and borrowings.

3. "Cash dividends paid" is not an investing activity. It is a financing activity because it involves the payment of cash to the company's shareholders.

4. "Cash used to purchase equipment" is an investing activity. It involves the purchase of a long-term asset that will be used in the business, which falls under investing activities.

Knowee AI · Accepted Answer

The correct answer is "Cash used to purchase equipment."

Investing activities in a cash flow statement refer to the changes in a company's investments and long-term assets. This includes purchases or disposals of long-term assets, such as property, plant, and equipment, as well as investment securities.

Here's a step-by-step breakdown:

1. "Cash collected from customers" is not an investing activity. It is an operating activity because it is a regular business operation.

2. "Cash received from an issuance of bonds" is not an investing activity. It is a financing activity because it involves changes in the size and composition of the company's contributed equity and borrowings.

3. "Cash dividends paid" is not an investing activity. It is a financing activity because it involves the payment of cash to the company's shareholders.

4. "Cash used to purchase equipment" is an investing activity. It involves the purchase of a long-term asset that will be used in the business, which falls under investing activities.

Item 3Which of the following would be included in cash flows from investing activities?Multiple ChoiceCash collected from customers.Cash received from an issuance of bonds.Cash dividends paid.Cash used to purchase equipment.

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