Use the following codes to indicate how the cash flow effect, if any, of each transaction would be reported on a statement of cash flows if the operating activities section is prepared using the direct method. (Choices may be used more than once.)
-Sold office building for cash.
A)Inflow from operating activity
B)Outflow from operating activity
C)Inflow from investing activity
D)Outflow from investing activity
E)Inflow from financing activity
F)Outflow from financing activity
G)Noncash investing and financing activity
H)Not reported on statement of cash flows

Question

Quizplus · Accepted Answer

The sale of an office building is considered an investing activity and the cash received from the sale would be reported as an inflow from investing activities on the statement of cash flows prepared using the direct method.

Use the Following Codes to Indicate How the Cash Flow