Classified as investing activity

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Reference no: EM131205120

In a statement of cash flows, which of the following would be classified as an investing activity?

a. The sale of the company's own common stock for cash.

b. Interest paid to a lender.

c. The sale of equipment.

d. The issuance of bonds payable.

In capital budgeting computations, discounted cash flow methods:

a. assume that all cash flows occur at the beginning of a period.

b. automatically provide for recovery of initial investment.

c. can't be used unless cash flows are uniform from year to year.

d. ignore all cash flows after the payback period.

Reference no: EM131205120

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