In a statement of cash flows,the sale of a long-term investment would ordinarily be classified as:
A) an operating activity.
B) a financing activity.
C) an investing activity.
D) a lending activity.

Question

Quizplus · Accepted Answer

The sales of long-term investments are categorized as investing activities as they involve the purchase and sale of long-term assets that are not held for operational purposes. These include investments in stocks, bonds, or other entities that are not related to the company's daily operations. Investing activities are reported in the cash flow statement as they represent cash flows related to the acquisition and disposal of long-term assets.

In a Statement of Cash Flows,the Sale of a Long-Term