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.Management Sciences
A. Operating activity
B. Investing activity
C. Financing activity
D. None of the given options
Investing activities – changes in investments and long-term assets
Cash inflows:
From sale of property, plant, and equipment.
From sale of investments in debt or equity securities of other entities.
From collection of principal on loans to other entities.
Cash outflows:
To purchase property, plant, and equipment.
To purchase investments in debt or equity securities of other entities.
To make loans to other entities..
Related Mcqs:
- Which of the following refers to the cash flows that result from the firm‟s day-to-day activities of producing and selling?
- A. Operating Cash Flows B. Investing Cash Flows C. Financing Cash Flows D. All of the given options...
- Which of the following is the process of planning and managing a firm‟s long-term investments?
- A. Capital Structuring B. Capital Rationing C. Capital Budgeting D. Working Capital Management...
- You just won a prize, you can either receive Rs. 1000 today or Rs. 1,050 in one year. Which option do you prefer and why if you can earn 5 percent on your money?
- A. Rs. 1,000 because it has the higher future value B. Rs. 1,000 because you receive it sooner C. Rs. 1,050 because it is more money D. Either because both options are of equal value...
- Which of the following set of ratios relates the market price of the firm’s common stock to selected financial statement items?
- A. Liquidity Ratios B. Leverage Ratios C. Profitability Ratios D. Market Value Ratios...
- If a company revaluates its fixed assets, the current ratio of the company will:
- A. Improve if assets are revalued upward B. Remain unaffected C. Improve if assets are revalued downwards D. Undergo change only if liabilities are remaining constant...
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