GASB And FASAB Standards Practice Test

Cash flows from investing activities reflect the cash effects of transactions involving investments and lending/loans, not everyday operations or capital financing. In a government enterprise fund, this section shows how much cash came from or went to buying and selling investments (and similar investing activities). The correct amount represents the net inflow or outflow from those investing activities. Here, the figure that matches investing activities is $300,000, which would be the net cash provided by selling investments (or similar investing activity) during the period. The other amounts pertain to either operating activities or capital/financing activities, and do not belong in the investing section. Therefore, reporting $300,000 as cash flows from investing activities is appropriate.