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Alexandra [31]
3 years ago
6

Under U.S. GAAP, cash flows from investing activities do not include:a. cash payments to acquire equipment.b. cash received from

selling investments in securities of another company.c. investment revenue in cash.d. cash paid to buy land.
Business
1 answer:
Semenov [28]3 years ago
6 0

Answer:

The correct answer is letter "C": investment revenue in cash.

Explanation:

Cash flows from investing activities are portrayed in the Cash Flow Statement indicating the amount o cash that was generated or spent from investment-related activities of the company. Usually, <em>cash payments to acquire physical assets, receipts from the sale of intangible assets, cash payments or receipts for the sale of bonds or shares of other companies, </em>and <em>cash payments in the form of loans</em> are considered in the cash flows from investing activities.

<em>According to the U.S. Generally Accepted Accounting Principles (GAAP), investment revenue in cash is reported as an inflow from operating activities.</em>

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Mar. 31          Supplies Expense  Dr                    10,000

                          Supplies Account  Cr                                 10,000

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Mar 31.   Salaries and Wages Expenses  Dr      2000

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