Question

Cash Flows from Investing Activities would involve all of the following except:

A. The purchase of buildings.
B. The receipt of interest income on short-term investments.
C. The purchase of marketable securities.
D. The proceeds from the sale of equipment.

Answer 1

B

Step-by-step explanation:

there are three types of cash flows:

1. Investing cash flow - It involves the use of long term cash. it is the cash flow generated from the purchase and sale of fixed asset e.g. Sale of plant assets.

2. operating cash flow - it shows the net amount of cash generated from a company's normal business operation

3. financing cash flow - it shows the net amount of funding a company receives over a given period e.g. issuance of common stock