[jahubb]

Can someone please check this? Here is my question.
Give at least three examples of circumstances that would result in the bottom line of investing activities section of the cash flow statement being reported as "net cash used by investing activities.
Is there a difference between "used for" and "used by"
Here is my answer.
1. Sold long term investments for cash
2. Received cash for sale of land
3. Purchased equipment.
Am I understanding the question correctly?

[morgaine300]

First, used for and used by mean the same thing.

And no, you're not understanding the question correctly. Being "used" means the cash is going away. You're using the cash for something, not getting it. As opposed to "net cash provided by" which means the cash was provided by some activity that happened -- i.e. came in.

It's a dumb question in a way, because it's not any one activity that causes the "net" to go one direction or the other, but rather the combination of activities. i.e. we could have 3 activities, two negative and one positive, and still end up with a positive when we get done. (And the problem even says "bottom line.") But we can't help what the question says. :rolleyes: So you'll have to treat it as individual activities, rather than the bottom line.

You're doing the exactly opposite of what it's saying. They are all investing activities, but you're going the wrong direction.

[jahubb]

OK, lets try this again
Would it be, additions to property and equipment
Purchases of available for sale securities
Sales of available for sale securities ?

[morgaine300]

The sale of a security causes incoming cash, not outgoing. Why not just go with what you originally had, but just make sure they're all outgoing cash. e.g. purchase of land instead of sale of land. Remember that it's the purchase of assets that makes cash go down, not selling them.