"Cash flows from investing activities" do NOT include which of the following as inflows
A) Receipts from the sale of marketable securities.
B) Interest received on bonds held as short-term investments.
C) Interest received on bonds held as long-term investments.
D) Transfers to other funds.

Question

Quizplus · Accepted Answer

Interest received (choices B and C) is typically classified under operating activities, not investing activities. However, the question asks for what does NOT count as an inflow for investing activities. Receipts from the sale of marketable securities (A) are indeed classified as inflows under investing activities. Transfers to other funds (D) do not represent an inflow from investing activities; instead, they are merely internal transfers and do not reflect external investment income or proceeds.

"Cash Flows from Investing Activities" Do NOT Include Which of the Following