Cash paid to purchase long-term investments would be reported on the statement of cash flows in a. the Cash flows from investing activities section b. the Cash flows from financing activities section c. a separate schedule d. the Cash flows from operating activities section

Question

Mary Fischer

Business

19 January, 10:52

Cash paid to purchase long-term investments would be reported on the statement of cash flows in a. the Cash flows from investing activities section b. the Cash flows from financing activities section c. a separate schedule d. the Cash flows from operating activities section

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Answers (1)

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Harriet · Answer 1

a. the Cash flows from investing activities section

Explanation:

Cash flows from investing activities involves cash for purchase of fixed assets, long term investments, and dividend payments.

It is important to note that negative cash flow from investing activities does not mean the business is performing badly. It may mean the business is investing in long term assets that will boost t performance, and the effect is not seen in the period under consideration for the cash flow.