Question

When analyzing the changes on a spreadsheet used to prepare a statement of cash flows, the cash flows from investing activities generally affect:
a. Noncurrent assets.
b. Net income, current assets, and current liabilities.
c. Both noncurrent assets and noncurrent liabilities.
d. Equity accounts only.
e. Noncurrent liability and equity accounts.

Answer 1

Answer:

The cashflow from investing activities generally affect non-current assets.

The correct answer is A

Explanation:

Cashflow from investing activities shows the amount that has been used or generated from investments. These include cashflow from disposal or acquisition of non-current assets such as property. plant and equipment.