Which of the following represents an investing activity on the statement of cash flows?
A) Repaying money previously borrowed.
B) Receiving cash from a share issue.
C) Collecting cash on loans previously made to other entities.
D) Obtaining cash from creditors.

Question

Quizplus · Accepted Answer

Collecting cash on loans previously made to other entities represents an investing activity, as it involves the receipt of cash from an investment made in another entity. Repaying money previously borrowed (A) and obtaining cash from creditors (D) represent financing activities, while receiving cash from a share issue (B) represents a financing or operating activity, depending on the purpose of the share issue.

Which of the Following Represents an Investing Activity on the Statement