Which of the following would be an example of an investing activity on the cash flow statement?
A)Purchase of capital assets
B)Sale of preferred shares
C)Repurchase of shares issued
D)Dividends paid to shareholders

Question

Quizplus · Accepted Answer

Purchasing capital assets is considered an investing activity because it involves the acquisition of long-term assets that are expected to generate income and/or appreciate in value over time. The other choices (B, C, and D) all involve financing or operating activities on the cash flow statement.

Which of the Following Would Be an Example of an Investing