Question

_________ is an investing cash flow and ________ is a financing cash flow, as reported in the Statement of Cash Flows. Multiple Choice Purchasing treasury stock; lending cash to an employee Issuing bonds; selling investments Receiving cash from the sale of inventory; paying cash dividends Purchasing land; repaying a bank loan

Answer 1

There are different kinds of cash flows

Purchasing land is an investing cash flow and repaying a bank loan is a financing cash flow, as reported in the Statement of Cash Flows.

• Cash flow from investing activities is simply known to be the cash that has been gotten or spent on non-current assets that are made to be use to produce a profit in the future.

The Types of activities that uses this are: capital expenditures, lending money etc.

Cash flows from financing (CFF), is also known as financing cash flow. It tells the net flows of cash that are used to finance the firm and its capital.

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