Cash outflows from investing activities would include payments for all of the following except:
A) Purchase of capital assets.
B) Investments in securities available for sale.
C) Repurchase of common stock.
D) Loans to other parties.

Question

Quizplus · Accepted Answer

Cash outflows from investing activities relate to using funds to acquire or dispose of long-term assets, other companies, or securities. Option A involves the purchase of capital assets, which is an investing activity, as is option B, which refers to the acquisition of securities available for sale. Option D, loans to other parties, can also be considered an investing activity. However, repurchase of common stock from shareholders is not considered an investing activity but rather a financing activity since it affects the company's equity. Thus, the correct answer is option C, repurchase of common stock.

Cash Outflows from Investing Activities Would Include Payments for All