Which of the following transactions will result in a decrease in cash flow from investments?
A) Acquisition of another business
B) Capital gain from sale of a subsidiary
C) Decrease in net investments
D) Sale of equipment

Question

Quizplus · Accepted Answer

Acquisition of another business involves a cash outflow and therefore will result in a decrease in cash flow from investments.

Other choices:

B) Capital gain from sale of a subsidiary: This will result in a cash inflow and increase in cash flow from investments.

C) Decrease in net investments: The impact on cash flow from investments cannot be determined by this information alone.

D) Sale of equipment: This will result in a cash inflow and increase in cash flow from investments.

Which of the Following Transactions Will Result in a Decrease