Using the Indirect Method
For the following question(s), indicate how each transaction described would be classified on a statement of cash flows if the operating activities section is prepared under the indirect method.
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When using the indirect method, where is the receipt of cash from the sale of long-term investments treated on the statement of cash flows?
A) Operating activity
B) Investing activity
C) Financing activity
D) Noncash investing or financing activity

Question

Using the Indirect Method 
For the following question(s), indicate how each transaction described would be classified on a statement of cash flows if the operating activities section is prepared under the indirect method.
-
When using the indirect method, where is the receipt of cash from the sale of long-term investments treated on the statement of cash flows?
A) Operating activity
B) Investing activity
C) Financing activity
D) Noncash investing or financing activity

Quizplus · Accepted Answer

The receipt of cash from the sale of long-term investments is treated as an investing activity under the indirect method.