In a statement of cash flows, what two activities of the firm relate to cash used in or provided by the firm's investment activities?Multiple select question.financinginvestments accountingsale of plant assets
Question
In a statement of cash flows, what two activities of the firm relate to cash used in or provided by the firm's investment activities?Multiple select question.financinginvestments accountingsale of plant assets
Solution
The two activities of the firm that relate to cash used in or provided by the firm's investment activities, as per a statement of cash flows, are:
- Investments
- Sale of plant assets
These activities are part of the investing activities section of the cash flow statement, which reflects the change in a company's cash position resulting from any gains (or losses) from investments in financial markets and operating subsidiaries, and changes resulting from amounts spent on investments in capital assets like plant and equipment.
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