Asked by Camille Esselin on May 02, 2024
Verified
Investing activities include the cash effects of selling stocks and bonds to raise capital to purchase fixed assets.
Investing Activities
Transactions and events that involve the purchase and sale of long-term assets and other investments not generally considered cash equivalents.
Capital to Purchase Fixed Assets
Financial resources allocated for the purchase of long-term physical assets that a company uses in its operations.
- Understand how the cash flow statement relates to changes in the balance sheet and the importance of investing activities.
Verified Answer
EB
Evaejua BartlettMay 08, 2024
Final Answer :
False
Explanation :
Investing activities involve the purchase and sale of long-term assets and other investments, not the cash effects of selling stocks and bonds, which are considered financing activities.
Learning Objectives
- Understand how the cash flow statement relates to changes in the balance sheet and the importance of investing activities.
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