Cash flows from investing do not include cash flows from:
A)Lending money to another corporation.
B)The sale of equipment.
C)Borrowing.
D)The purchase of other corporation's securities.

Question

Quizplus · Accepted Answer

Cash flows from investing activities only includes the purchase and sale of long-term assets such as property, plant, and equipment, and investments in securities such as bonds or stocks of other corporations. Lending money to another corporation and the purchase of other corporation's securities are considered as cash flows from financing activities, while borrowing is considered as cash flows from operating activities.

Cash Flows from Investing Do Not Include Cash Flows From