Cash flows from investing activities include cash:
A)inflows and outflows reflecting revenues and expenses reported on the income statement.
B)inflows from the issuance of bonds.
C)inflows from the sale of long-term investments.
D)inflows from the sale of a company's own stock to its stockholders.

Question

Quizplus · Accepted Answer

Cash flows from investing activities are the cash inflows and outflows related to the purchase and disposal of investments and long-lived assets.Cash inflows and outflows related directly to the revenues and expenses reported on the income statement are classified as operating (rather than investing)activities.Cash inflows from the issuance of bonds and from the sale of a company's own stock to its stockholders are classified as financing (rather than investing)activities.

Cash Flows from Investing Activities Include Cash