Questions
BU.210.650.51.FA25 Final Exam- Requires Respondus LockDown Browser
Single choice
Which of the following statements is false?
Options
A.Purchase of equipment is an investing cash outflow.
B.Purchase of a patent is an investing cash outflow.
C.Purchase of short-term investments is an investing cash outflow.
D.Sale of equipment creates investing cash outflow equal to its selling price.
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Step-by-Step Analysis
Let’s break down what each statement implies about cash flows from investing activities.
Option 1: 'Purchase of equipment is an investing cash outflow.' When a company buys equipment, it uses cash to acquire a long-term asset, and this is recorded as a cash outflow ......Login to view full explanationLog in for full answers
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