When using the indirect method, 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

Question

Quizplus · Accepted Answer

Receipt of cash from the sale of long-term investments is a result of investing activities, therefore it is classified as an investing activity on the statement of cash flows when using the indirect method.

When Using the Indirect Method, How Is the Receipt of Cash