When using the indirect method to determine operating cash flows,how is the receipt of cash from the sale of long-term investments treated on the statement of cash flows?
A)Operating activity
B)Investing activity
C)Financing activity
D)Noncash investing or financing activity
E)Not reported on the statement of cash flows

Question

Quizplus · Accepted Answer

The receipt of cash from the sale of long-term investments is treated as an investing activity on the statement of cash flows. This is because the sale of long-term investments represents a disposal of a long-term asset and is therefore considered a cash inflow from investing activities.

When Using the Indirect Method to Determine Operating Cash Flows,how