Which of the following is not reported as a cash flow from investing activities?
A)Sale of a depreciable asset for cash.
B)Purchasing land in exchange for common stock.
C)Selling a long-term investment at a loss for cash.
D)Purchase of a patent in exchange for cash.

Question

Quizplus · Accepted Answer

Purchasing land in exchange for common stock is not reported as a cash flow from investing activities because it involves a non-cash transaction. Cash flows from investing activities involve cash transactions related to the acquisition or disposal of long-term assets, such as property, plant, and equipment, long-term investments, and intangible assets. Choices A, C, and D involve cash transactions related to the acquisition or disposal of depreciable assets, long-term investments, and intangible assets, respectively.

Which of the Following Is Not Reported as a Cash