Asked by Gillian Sanders on May 31, 2024
Verified
Which of the following transactions will result in a decrease in cash flow from investments?
A) acquisition of another business
B) capital gain from sale of a subsidiary
C) decrease in net investments
D) sale of equipment
Capital Gain
The increase in value of an asset or investment from its purchase price to its selling price.
Cash Flow From Investments
Financial statement item that reports the net amount of money used for or generated from the company's investment purchases and sales during a specific period.
Acquisition
The process of acquiring control of another company by purchase or exchange of equity.
- Comprehend the importance of cash flow originating from various activities (operating, investing, financing) in ensuring a company's sustainability.
Verified Answer
Learning Objectives
- Comprehend the importance of cash flow originating from various activities (operating, investing, financing) in ensuring a company's sustainability.
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