Increases and decreases in the long-term assets available to a company are reported on the statement of cash flows as:
A) operating activities.
B) investing activities.
C) financing activities.
D) noncash activities.

Question

Quizplus · Accepted Answer

Increases and decreases in long-term assets are reported on the statement of cash flows as investing activities, which includes cash inflows and outflows related to the acquisition or disposal of long-term assets, such as property, plant, and equipment, and intangible assets. Operating activities relate to transactions that impact the day-to-day operations of the business, financing activities relate to transactions related to the company's capital structure, and noncash activities relate to transactions that do not involve the exchange of cash, such as depreciation, amortization, and stock-based compensation.

Increases and Decreases in the Long-Term Assets Available to a Company