is an example of cash flow from an investing activity in a cash flow statement. Payment of dividends Repurchase of stock Purchase of equipment Purchase of inventory Repayment of debt
is an example of cash flow from an investing activity in a cash flow statement. Payment of dividends Repurchase of stock Purchase of equipment Purchase of inventory Repayment of debt
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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
Transcribed Image Text:This is a multiple-choice question examining an understanding of cash flow statements. The prompt is:
"_____ is an example of cash flow from an investing activity in a cash flow statement."
Below the prompt are five answer options:
1. Payment of dividends
2. Repurchase of stock
3. Purchase of equipment
4. Purchase of inventory
5. Repayment of debt
The current selection shown is "Payment of dividends."
**Explanation:**
In the context of cash flow statements, investing activities typically involve transactions related to the acquisition or sale of long-term assets. Common examples include the purchase or sale of equipment, property, and investment securities. Therefore, the correct answer to this question would focus on activities involving investments in or disposals of long-term assets.
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