Which of the following statements about cash flows from investing activities is correct?
A) The proceeds from sales of investments are reported as cash inflows from investing activities.
B) Cash flows from investing activities are calculated by making adjustments to net income.
C) Cash paid to acquire long-lived assets is reported as a cash inflow from investing activities.
D) Cash received from issuing a long-term payable is reported as a cash inflow from investing activities.

Question

Quizplus · Accepted Answer

The proceeds from sales of investments are reported as cash inflows from investing activities on the statement of cash flows. Option B is incorrect because cash flows from investing activities are reported separately and not calculated by adjusting net income. Option C is incorrect because cash paid to acquire long-lived assets is reported as a cash outflow from investing activities, and not as a cash inflow. Option D is incorrect because cash received from issuing a long-term payable is reported as a cash inflow from financing activities, and not as a cash inflow from investing activities.

Which of the Following Statements About Cash Flows from Investing