Practice Quiz

MTEL Business Practice Exam

Category - Business Operations

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Which of the following is categorized as investment activity on the Statement of Cash Flows for a business?
  1. Buying equipment.
  2. Issuing bonds payable.
  3. Selling treasury stock.
  4. Paying dividends.
Explanation
Correct Response: A. Examples of investment activity on the Statement of Cash Flows for a business include cash payments to purchase property and plant equipment. Investment activity on the statement of cash flows for business would also include the purchase of bonds or shares; it would not include issuing bonds payable (B), selling treasury stock (C), or paying dividends (D).
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