When using the indirect method to determine operating cash flows, how 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
E)not reported on the statement of cash flows

Question

Quizplus · Accepted Answer

Receipt of cash from the sale of long-term investments is considered an investing activity and is therefore reported under the investing activities section of the statement of cash flows when using the indirect method to determine operating cash flows.

When Using the Indirect Method to Determine Operating Cash Flows