On a statement of cash flows,activities that affect long-term assets are classified as:
A)operating activities.
B)investing activities.
C)financing activities.
D)stockholders' equity activities.

Question

Quizplus · Accepted Answer

Activities that affect long-term assets, such as the purchase or sale of property, plant, and equipment, are classified as investing activities on the statement of cash flows. Operating activities refer to the day-to-day business activities that affect current assets and liabilities, while financing activities relate to the company's sources of funding and changes to its capital structure. Stockholders' equity activities include issuing or buying back shares of stock and paying dividends.

On a Statement of Cash Flows,activities That Affect Long-Term Assets