Choose the combination below that best reflects the appropriate classification of cash received from investing and financing activities. Cash Received from Cash Received from
Investing Activities Financing Activities
A)Sale of treasury stock Proceeds from issuing common stock
B)Sale of treasury stock Sale of investment securities
C)Sale of investment securities Proceeds of issuing common stock
D)Proceeds from issuing common stock Sale of investment securities
E)None of these answers is correct.

Question

Quizplus · Accepted Answer

The sale of investment securities is classified as an investing activity because it involves the sale of long-term assets. Proceeds from issuing common stock are classified as a financing activity because it involves obtaining funds from owners.

Choose the Combination Below That Best Reflects the Appropriate Classification