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if a company reports a negative dollar amount under cash flows used by investing activities on its statement of cash flows, a possible explanation is that ______________.

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Final answer:

A negative dollar amount under cash flows used by investing activities on a statement of cash flows may indicate that the company has made investments in assets or acquisitions, requiring the use of cash.

Step-by-step explanation:

If a company reports a negative dollar amount under cash flows used by investing activities on its statement of cash flows, a possible explanation is that the company has made investments in assets such as property, plant, and equipment, or acquisitions of other companies. These investments require the company to use cash, resulting in a negative amount in the investing activities section of the statement of cash flows.

User Artur Smirnov
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