The following item would be classified as an investing activity on the statement of cash flows:
A)Proceeds from borrowing.
B)Sale of goods.
C)Sale of property.
D)Payment to lenders.

Question

Quizplus · Accepted Answer

The sale of property would result in cash inflows and is therefore classified as an investing activity on the statement of cash flows. The other options would be classified differently - A) as a financing activity, B) as an operating activity, and D) as a financing or operating activity depending on the nature of the payment.

The Following Item Would Be Classified as an Investing Activity