Question

Which of the following cash flows should be included in the Investing Section of the statement...

Which of the following cash flows should be included in the Investing Section of the statement of cash flows under US GAAP?

  • Cash paid to buy a new facility
  • Cash Collections from customers
  • Shares buyback
  • Interest earned in cash
  • Payment of long term bonds payable
  • Cash received in sale of equipment
  • Wages paid to employees
  • Cash paid for long term investment
  • Payment to suppliers
  • Principal received from loans made to others
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Answer #1

Investing activities generally involve long-term assets and include:

  • Making and collecting loans.

  • Acquiring and disposal of investments and productive long-lived assets.

The answer is:

  • Cash paid to buy a new facility
  • Cash received in the sale of equipment
  • Cash paid for long term investment
  • Principal received from loans made to others
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