Which of the following is an example of a cash inflow from an investing activity?Multiple ChoiceReceipt of cash from customersReceipt of cash from the sale of equipmentReceipt of cash from the issuance of common stockReceipt of cash from the issuance of bonds
Question
Which of the following is an example of a cash inflow from an investing activity?Multiple ChoiceReceipt of cash from customersReceipt of cash from the sale of equipmentReceipt of cash from the issuance of common stockReceipt of cash from the issuance of bonds
Solution
The correct answer is: Receipt of cash from the sale of equipment.
Investing activities in a cash flow statement typically involve changes in equipment, assets, or investments. Therefore, when a company sells equipment and receives cash, it is considered a cash inflow from an investing activity.
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.
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
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.
MC Qu. 28 (LO11-4) Which of the following is... Which of the following is an example of a cash outflow from an investing activity? Multiple Choice Purchase of a building. Purchase of treasury stock. Payment of cash dividends. Payment of interest.
Cash flows from investing activities include all of the following except:Multiple ChoiceCash proceeds from selling investments.Cash proceeds from collections on loans.Cash advanced to borrowers.Cash proceeds from borrowing.
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