Which of the following items would be used to compute "Net Cash Flow from Investing Activities" on a Statement of Cash Flows? 1) issue common stock
2) payment on principal of note payable
3) depreciation expense
4) sale of equipment for cash
A)4 only
B)1 and 4
C)3 only
D)1, 2, 3, and 4

Question

Quizplus · Accepted Answer

Issuing common stock and paying on a note payable are both financing activities. Depreciation does not affect cash flows. The sale of equipment for cash is a cash inflow for investing activities.

Which of the Following Items Would Be Used to Compute