Which of the following would not be reported as an investing activity on the statement of cash flows?
A) Cash dividends received from an investment in marketable securities.
B) Cash loaned to another company.
C) Cash received from the sale of equipment.
D) Cash paid to purchase production equipment.

Question

Quizplus · Accepted Answer

Cash dividends received from an investment in marketable securities would be reported as a cash inflow from operating activities since it represents a return on the company's investment. Investing activities involve the purchase or sale of long-term assets, such as equipment or investments in other companies. Therefore, options B, C, and D would all be reported as investing activities on the statement of cash flows.

Which of the Following Would Not Be Reported as an Investing