Which of the following would not be a cash flow from investing activities?
A)Purchase of long-term investments.
B)Sale of a patent.
C)Collection of principal on a long-term note receivable.
D)Collection of interest revenue on a long-term note receivable.

Question

Quizplus · Accepted Answer

Collection of interest revenue on a long-term note receivable is a cash flow from operating activities since it relates to the company's primary business operations of lending money. Choices A and B are cash flows from investing activities as they relate to the purchase and sale of long-term assets. Choice C is also a cash flow from investing activities since it relates to the collection of principal on a long-term investment.

Which of the Following Would Not Be a Cash Flow