Typical cash flows from investing activities include each of the following except:
A)Payments to purchase property,plant and equipment or other productive assets (excluding inventory).
B)Proceeds from collecting the principal amount of accounts receivable arising from customer sales.
C)Payments to buy intangible assets.
D)Payments to acquire held-to maturity securities of other entities,except cash equivalents.
E)Proceeds from the sale of equipment.

Question

Quizplus · Accepted Answer

Cash flows from investing activities relate to the acquisition and disposal of long-term productive assets, investments in other companies, and intangible assets. Payments to purchase property, plant, and equipment, payments to buy intangible assets, payments to acquire held-to-maturity securities of other entities (except cash equivalents), and proceeds from the sale of equipment are all typical cash flows from investing activities. However, proceeds from collecting the principal amount of accounts receivable arising from customer sales are not considered investing activities but are part of operating activities.

Typical Cash Flows from Investing Activities Include Each of the Following