Which of the following cash flows results from an investing activity?
A)Making a payment on a loan
B)Receiving a cash dividend on an investment in another company
C)Selling an investment in another company
D)Receiving payment from a customer for last month's accounts receivable

Question

Quizplus · Accepted Answer

Selling an investment in another company is a cash inflow from an investing activity. Making a payment on a loan and receiving payment from a customer for accounts receivable are cash flows from financing and operating activities, respectively. Receiving a cash dividend on an investment in another company is also a cash inflow, but it is categorized as a cash flow from operating activities.

Which of the Following Cash Flows Results from an Investing