Acquiring and disposing of long-lived assets are ﬁnancing activities on the cash ﬂow statement.

Question

Quizplus · Accepted Answer

Acquiring and disposing of long-lived assets are considered investing activities on the cash flow statement, not financing activities. Financing activities involve obtaining or repaying funds from creditors or investors, such as issuing or paying off debt, issuing or repurchasing stock, or paying dividends.

Acquiring and Disposing of Long-Lived Assets Are ﬁNancing Activities on the Cash