On the statement of cash flows, which of the following would be considered an investing activity?
A)A purchase of treasury stock
B)A sale of land
C)Depreciation of equipment
D)A sale of inventory

Question

Quizplus · Accepted Answer

A sale of land is considered an investing activity as it involves the acquisition or disposal of long-term assets such as property, plant, and equipment. The purchase of treasury stock would be classified as a financing activity, depreciation of equipment would be classified as an operating activity, and a sale of inventory would also be classified as an operating activity (specifically within the cash flows from operating activities section).

On the Statement of Cash Flows, Which of the Following