The following item is classified as part of 'investing activities' in the statement of cash flows:
A) depreciation of non-current assets.
B) gain on sale of investments.
C) acquisition of non-current assets.
D) proceeds from an issue of shares.

Question

Quizplus · Accepted Answer

Acquisition of non-current assets is classified as an investing activity because it involves a significant outflow of cash for the purchase of assets that are used in the company's operations for an extended period of time. Depreciation of non-current assets, gain on sale of investments, and proceeds from an issue of shares, are all classified as operating activities, investing activities, and financing activities, respectively.

The Following Item Is Classified as Part of 'Investing Activities