Which is an example of a cash flow from an investing activity? (2024)

Which is an example of a cash flow from an investing activity?

Answer: b) Receipt of cash from the sale of equipment

Which is an example of cash flow from an investing activity?

Cash inflows (proceeds) from investing activities include:

Cash receipts from collections of loans (except for program loans) and sales of other agencies' debt instruments. Cash receipts from sales of equity instruments and returns from investments in those instruments.

What is an example of an investing activity on a statement of cash flows quizlet?

Dividends received from a subsidiary would be classified as an investing activity on a statement of cash flows.

Which one of these is the definition of cash flows from investing activities?

Which one of these is the definition of cash flows from investing activities? Cash flow from investing activities is defined as the cash flows associated with the purchase or sale of fixed or other long-term assets.

Which of the following is an example of a cash inflow?

Some examples of cash inflow are: Revenue from customer payments. Cash receipts from sales. Funding.

What is an example of an investing activity?

Investing activities include purchases of long-term assets (such as property, plant, and equipment), acquisitions of other businesses, and investments in marketable securities (stocks and bonds).

What are the 3 types of cash flow statement?

The cash flow statement is broken down into three categories: Operating activities, investment activities, and financing activities.

What is an example of an investing activity quizlet?

Investing activities include the purchase or sale of long-lived assets used in operating the business, or the purchase or sale of investment securities. What are financing activities? The primary types of financing activities are borrowing money, issuing shares of stock, and paying dividends.

Which is an example of a cash flow from a financing activity quizlet?

Which is an example of a cash flow from a financing activity? Answer C: Financing activities deal with obtaining cash from issuing debt and repaying amounts borrowed, and obtaining cash from stockholders, repurchasing shares, and paying dividends.

Do cash flows from investing activities do not include quizlet?

Cash flows from borrowing are excluded from cash flows from investing activities.

Which of the following activities would be classified as an investing activity?

Investing activities involve the purchase and sale of long-term fixed assets, long-term investments, accepting notes receivable, lending loans, and few other investments other than in cash and cash equivalents. The cash flows from investing activities are recorded in the second section of the cash flow statement.

Is borrowing money an investing activity?

If a company borrows money, this is a financing activity. There are some inflows from financing activities including borrowing money or selling common stock. Outflows from financing activities include paying the principal part of debt (a loan payment), buying back your own stock or paying a dividend to investors.

Which of the following cash transactions are classified as cash inflows from investing activities?

Cash inflows (proceeds) from investing activities include: Receipts from collections of loans (except program loans) and sales of other entities' debt instruments (other than cash equivalents) Receipts from sales of equity instruments and from returns of investment in those instruments.

Which of the following is a cash inflow financing activity?

Cash Flow from Financing Activities is the net amount of funding a company generates in a given time period. Finance activities include the issuance and repayment of equity, payment of dividends, issuance and repayment of debt, and capital lease obligations.

Which of the following is not a type of cash flows shown in the cash flow statement?

It is broken down into three sections with operational cash flow, investment cash flow, and financing cash flows. Among the choices, the cash flows from taxation is not a category of cash flows.

What is cash flow investment?

Cash flow from investing (CFI) or investing cash flow reports how much cash has been generated or spent from various investment-related activities in a specific period. Investing activities include purchases of speculative assets, investments in securities, or sales of securities or assets.

What is the cash flow statement?

A cash flow statement is a financial statement that shows how cash entered and exited a company during an accounting period. Cash coming in and out of a business is referred to as cash flows, and accountants use these statements to record, track, and report these transactions.

Which of the following is not a cash flow from investing activity?

Marketable security purchases are treated as cash and cash equivalents and do not count as part of the investment cash flow.

What do investing activities do?

A business's reported investing activities give insights into the total investment gains and losses it experienced during a defined period. Investing activities are a crucial component of a company's cash flow statement, which reports the cash that's earned and spent over a certain period of time.

What is an operating activity or investing activity?

Key Takeaway. The three categories of cash flows are operating activities, investing activities, and financing activities. Operating activities include cash activities related to net income. Investing activities include cash activities related to noncurrent assets.

What are the investing business activities?

Investing business activities are those that are capitalized over more than one year and usually appear as the second section of the cash flow statement. The purchase of long-term assets is recorded as a use of cash in this section. Likewise, the sale of real estate is shown as a source of cash.

Which of the following transactions would generally result in an investing cash flow?

Answer- 24)- The following transactions would generally result in an investing cash inflow= Receive cash from sale of land (Option B).

What do investing activities not include?

Which is not a cash activity listed on the cash flow statement operating activities investing activities purchasing activities financing activities?

Answer and Explanation:

The amount received from purchasing activities is not included in the cash flow statement. Hence, it is the correct option.

Does free cash flow include investing activities?

Free cash flow shows a company's ability to generate cash above its operating and investing needs. Free cash flow is used to measure whether a company has enough cash, after funding operations and capital expenditures, to pay its creditors and equity investors through debt repayments, dividends, and share buybacks.