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Question

Purchase of investments is a/an activity.

A
investing
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B
operating
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C
financing
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D
credit
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Solution

The correct option is A investing
An increase in capital expenditures means the company is investing in future operations; however, it also points to a reduction in cash flow. Examples of negative cash flow from investing activities include the purchase of fixed assets, the purchase of investment instruments (e.g., stocks), and lending money.

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