Which of the following types of transactions would be reported as a cash flow from investing activity on the statement of cash flows?
A) issuance of bonds payable
B) issuance of common stock
C) purchase of treasury stock
D) purchase of long-term assets

Question

Quizplus · Accepted Answer

Purchase of long-term assets is an investing activity that involves the acquisition of non-current assets such as land, buildings, equipment, and machinery. It is reported as a cash outflow from investing activities on the statement of cash flows.

A) Issuance of bonds payable is a financing activity that involves the inflow of cash from investors. 
B) Issuance of common stock is also a financing activity that involves the inflow of cash from investors. 
C) Purchase of treasury stock is not a cash flow from investing activity but rather a financing activity, as it involves the company buying back its own shares from the market.

Which of the Following Types of Transactions Would Be Reported