Which of the following would be reported in the investing activities section of a cash flow statement?
Posted: Sat Aug 07, 2021 6:57 am
A) Cash received from customers.
B) Cash received from the issue of common stock.
C) Cash paid to repay a bank loan.
D) Cash paid to acquire common stock of another company.
Answer: D
Explanation: Cash flows from investing include cash flows related to the purchase and sale of a
company's assets. Acquiring common stock of another company is considered an investment,
which is an asset.
B) Cash received from the issue of common stock.
C) Cash paid to repay a bank loan.
D) Cash paid to acquire common stock of another company.
Answer: D
Explanation: Cash flows from investing include cash flows related to the purchase and sale of a
company's assets. Acquiring common stock of another company is considered an investment,
which is an asset.