Question

In a statement of cash flows, the sale of a long-term investment would ordinarily be classified as:_____.a. an operating activity.
b. a financing activity.
c. an investing activity.
d. a lending activity.

Answer 1

Answer:

c. an investing activity.

Explanation:

The sale and acquisition of items of Property, Plant and Equipment is classified under investing activities in the cash flow statement.

Therefore, the sale proceeds following the sale of a long-term investment would ordinarily be classified as a cash inflow from investing activity.