In a statement of cash flows, which of the following would be classified as an investing activity?
A) The sale of the company's own common stock for cash.
B) The sale of equipment.
C) Interest paid to a lender.
D) The issuance of bonds payable.

Question

Quizplus · Accepted Answer

The sale of equipment is a cash inflow from investing activities, as it involves the disposal of a long-term asset.

Option A is incorrect because the sale of common stock is a financing activity, as it involves the issuance of equity.

Option C is incorrect because interest paid to a lender is a cash outflow from operating activities or financing activities.

Option D is incorrect because the issuance of bonds payable is a cash inflow from financing activities.

In a Statement of Cash Flows, Which of the Following