In relation to the cash flow statement, purchases and sales of long-term assets are examples of:
A)investing activities.
B)accrual activities.
C)financing activities.
D)operating activities.

Question

Quizplus · Accepted Answer

Purchases and sales of long-term assets are typically investing activities, as they involve the acquisition or disposal of assets meant to generate future economic benefits. This is in contrast to financing activities, which involve the raising or repayment of funds, and operating activities, which involve the day-to-day operations of the business. Accrual activities is not a recognized category of cash flow activities.

In Relation to the Cash Flow Statement, Purchases and Sales