Transactions of a company that include the purchase and sale of long-term assets are referred to as:
A)Investing activities.
B)Financing activities.
C)Expenditure activities.

Question

Quizplus · Accepted Answer

Transactions involving long-term assets are classified as Investing activities in the statement of cash flows. This includes purchases of property, plant, and equipment, as well as the sale of these assets. Financing activities involve issuing or repurchasing company stock, payment of dividends, and taking out or repaying loans. Expenditure activities is not a commonly used term in financial reporting.

Transactions of a Company That Include the Purchase and Sale