Question

In a statement of cash flows, the cash flows from investing activities section

should report:
A. the issuance of common stock in exchange for legal services.
B. a stock split.
C. the assignment of accounts receivable.
D. a payment of dividends.

Answer 1

The cash flows from investing activities section in a statement of cash flows should report the assignment of accounts receivable.

Step-by-step explanation:

In a statement of cash flows, the cash flows from investing activities section should report the assignment of accounts receivable.

Cash flows from investing activities involve the purchase or sale of long-term assets, such as property, plant, and equipment, investments in stocks or bonds of other companies, and loans made to other entities. Examples of cash flows from investing activities include the purchase of a new building, the sale of an investment in another company, or the repayment of a loan made to another business.

Therefore, option C, the assignment of accounts receivable, is the correct answer.