Which of the following statements is false?
A) Dividends received from stock investments increase cash flows from investing activities.
B) Income from investments accounted for using the equity method doesn't create cash flows.
C) Sale of stock investments is a cash inflow from investing activities.
D) Dividends received from stock investments accounted for using the equity method don't create net income but do create cash flows.

Question

Quizplus · Accepted Answer

Dividends received from stock investments are typically classified as operating activities, not investing activities, in the cash flow statement.

Which of the Following Statements Is False