U.S.GAAP classifies all of the following as investing activities on the statement of cash flows except for
A)cash inflows from selling manufacturing equipment.
B)cash outflows from purchasing bonds (intended to be held to maturity) of other entities.
C)cash outflows to lender for interest.
D)cash inflows from selling a (long-term) portfolio of equity securities of other entities.
E)cash outflows from buying manufacturing equipment.

Question

Quizplus · Accepted Answer

Cash outflows for interest expense are classified as operating activities in the statement of cash flows, not investing activities.

USGAAP Classifies All of the Following as Investing Activities on the Statement