Question

a company that reports a significant negative cash flow from investing activities due to the purchase of a building will most likely report a blank . multiple choice question.

Answer 1

The cash from investment activities portion of a company's cash flow statement will show any negative cash flow from investing operations. The cash flow statement is crucial because it assesses how well a company's management produces cash to settle liabilities and cover operational costs.

Selling and buying of any corporate fixed asset has an impact on cash flow from investing operations. When a corporation purchases a fixed asset during the time, the cash flow is negatively impacted because there is a cash outflow from the company. Because of the financial sheet, it is unquestionably a fairly normal practice.

Because management is investing in long-term assets that should support the company's future growth, a company's investing operations may result in a negative cash flow.

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