Investing cash flows in the statement of cash flows would include which of the following? A. Paying salaries for the month. B. Purchase of land. C. Paying dividends to stockholders. D. Selling goods or services to customers.

Question

Annika Daniels

Business

14 August, 23:25

Investing cash flows in the statement of cash flows would include which of the following? A. Paying salaries for the month. B. Purchase of land. C. Paying dividends to stockholders. D. Selling goods or services to customers.

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Answers (2)

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Jasmine Sullivan · Answer 1

B. Purchase of land.

Explanation:

Investing cash flow is the part of cash flow statement that shows cash obtained or spent in investing activities.

Investing activities can involve the following: purchase or sale of securities, purchase of physical assets like houses and land.

Generally negative cash flow indicates decline in performance. But when there is heavy investment in long term assets that is beneficial to the business it will also show negative cash flow.

So purchase of land is a form of investing cash flows.

Alma Vega · Answer 2

The correct answer is letter "B": Purchase of land.

Explanation:

Cash Flow from Investing is an account included in the Cash Flow Statement where the purchases of long-term assets are recorded. The company expects those assets to provide value in the future. Purchase of fixed assets (property, plants, and equipment) or purchase of investments (stocks, bonds, treasuries) are examples of transactions recorded in the Cash Flow from Investing.