Which of the following is an example of a cash inflow from investing activities?Multiple ChoiceReceipt of cash dividends.Cash received from the sale of equipment.Receipt of interest.Payment of cash dividends.
Question
Which of the following is an example of a cash inflow from investing activities?Multiple ChoiceReceipt of cash dividends.Cash received from the sale of equipment.Receipt of interest.Payment of cash dividends.
Solution
The correct answer is: Cash received from the sale of equipment.
Here's why:
Investing activities in a cash flow statement typically involve changes in equipment, assets, or investments. So, when a company sells equipment, the cash received from that sale is considered a cash inflow from investing activities.
On the other hand, the receipt of cash dividends and interest are considered cash inflows from operating activities, not investing activities. And the payment of cash dividends is a cash outflow, not an inflow.
Similar Questions
MC Qu. 29 (LO11-4) Which of the following is an example of a cash... Which of the following is an example of a cash inflow from an investing activity? Multiple Choice Receipt of cash from the sale of equipment. Receipt of cash from the sale of inventory. Receipt of cash from the issuance of common stock. Receipt of cash from the issuance of a note payable.
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.
Which of the following is an example of a cash outflow for a financing activity?Multiple ChoicePayment of cash for suppliesPayment of cash for the purchase of equipmentPayment of cash for treasury stockPayment of cash for interest expense
Which of the following items would be classified as an investing activity in a statement of cash flows?Group of answer choicesProceeds from the repayment of related party loans.Payments for businesses.Proceeds from the sale of plant and equipment.All of the items would be classified as investing activities.
The statement of cash flows separates cash inflows and outflows into the following classifications.Multiple choice question.Operations, Investments and FinancialGross Profit, Operating Income and Net IncomeCash Collected, Cash Disbursed and Change in CashOperating, Investing and Financing
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