Which of the following would be reported as an investing activity on the statement of cash flows:
A)the issue of preferred stock.
B)the purchase of equipment for cash.
C)the issue of bonds and notes payable.
D)the resale of treasury stock.

Question

Quizplus · Accepted Answer

The purchase of equipment for cash is considered an investing activity because it involves the acquisition of long-term assets that are necessary for the company's operations.

The other options are not considered investing activities:
A) Issuing preferred stock would be reported as a financing activity because it involves raising funds from investors.
C) Issuing bonds and notes payable would also be reported as a financing activity because it represents borrowing funds from lenders.
D) Reselling treasury stock would be reported as a financing activity because it involves changes to the company's equity accounts.

Which of the Following Would Be Reported as an Investing