Which of the following would be reported as a cash outflow from investing activities?
A)Donating an old piece of equipment to charity.
B)Repaying the principal of a bond.
C)Buying another company's bonds with cash.
D)Acquiring an investment security by issuing company stock.

Question

Quizplus · Accepted Answer

Cash flows from investing activities are the cash inflows and outflows related to the purchase and disposal of investments,such as another company's bond,and long-lived assets.Repaying the principal of a bond is a financing (rather than an investing)activity.Donating an old piece of equipment to charity and acquiring an investment security by issuing company stock are both noncash investing and financing activities.

Which of the Following Would Be Reported as a Cash