In preparing a statement of cash flows, which of the following transactions would be considered an investing activity? Financial Position and Cash Flows 5 - 13
A)sale of equipment at book value
B)sale of merchandise on credit
C)declaration of a cash dividend
D)issuance of bonds payable at a discount

Question

Quizplus · Accepted Answer

Investing activities include transactions involving the purchase and sale of long-term assets and investments. The sale of equipment at book value is an investing activity as it involves the disposal of a long-term asset.

In Preparing a Statement of Cash Flows, Which of the Following