Listed below are the reporting classifications for a statement of cash flows using the direct method for reporting operating cash flows. Match the reporting classifications with the transactions described below.
-Investing cash outflow
A)Cash collection of a nontrade note receivable.
B)Cash collected on accounts receivable.
C)Issuance of a long-term note payable for cash.
D)Cash purchase of securities issued by another corporation.
E)Payment of a property dividend.

Question

Quizplus · Accepted Answer

The correct match for "Investing cash outflow" is the cash purchase of securities issued by another corporation (D). This is because investing activities typically include transactions involving the acquisition and disposal of long-term assets and other investments not included in cash equivalents.

Listed Below Are the Reporting Classifications for a Statement of Cash