Asked by Endra Butler on Jun 15, 2024
Verified
When analyzing the changes on a spreadsheet used to prepare a statement of cash flows,the cash flows from investing activities generally are affected by:
A) Net income,current assets,and current liabilities.
B) Noncurrent assets.
C) Noncurrent liability and equity accounts.
D) Both noncurrent assets and noncurrent liabilities.
E) Equity accounts only.
Investing Activities
Transactions related to the acquisition or sale of long-term assets and investments.
Noncurrent Assets
Assets intended for long-term use and not expected to be converted into cash within one year, such as equipment, real estate, and patents.
- Recognize the components and preparation process of the statement of cash flows.
- Analyze developments in permanent assets, liabilities, and equity accounts to trace cash flows stemming from financing and investing actions.
Verified Answer
AM
Aleksa MarquezJun 21, 2024
Final Answer :
B
Explanation :
Cash flows from investing activities are primarily affected by changes in noncurrent assets, such as the purchase or sale of property, plant, and equipment, or investments in other companies.
Learning Objectives
- Recognize the components and preparation process of the statement of cash flows.
- Analyze developments in permanent assets, liabilities, and equity accounts to trace cash flows stemming from financing and investing actions.
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