[amp_mcq option1=”increased cash” option2=”decreased cash” option3=”increased liabilities” option4=”increased equity” correct=”option2″]<\/p>\n
The correct answer is B. decreased cash<\/strong>.<\/p>\n A statement of cash flows is a financial statement that reports a company’s cash receipts and cash payments during a specific period of time. It is divided into three sections: operating activities, investing activities, and financing activities.<\/p>\n Investing activities are those that involve the acquisition and disposal of long-term assets, such as property, plant, and equipment. When a company invests in short-term financial investments or fixed assets, it is using cash. This results in a decrease in cash on the statement of cash flows.<\/p>\n The other options are incorrect. Option A is incorrect because investing activities result in a decrease in cash, not an increase. Option C is incorrect because investing activities do not affect liabilities. Option D is incorrect because investing activities do not affect equity.<\/p>\n","protected":false},"excerpt":{"rendered":" [amp_mcq option1=”increased cash” option2=”decreased cash” option3=”increased liabilities” option4=”increased equity” correct=”option2″]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[945],"tags":[],"class_list":["post-45730","post","type-post","status-publish","format-standard","hentry","category-financial-management","no-featured-image-padding"],"yoast_head":"\n