Practicing Success
What will be the net effect of the transaction 'sale of long-term investments for cash" while preparing a cash flow statement by a company? |
Cash inflow Cash outflow No effect None of these |
Cash inflow |
Selling long-term investments generates cash inflow as the company receives cash from the sale of these investments. This cash inflow is reflected in the cash flow statement, under the "Cash Flows from Investing Activities" category. |