Which of the following items would be classified as investing activities in a statement of cash flows?
A) Proceeds from dividends.
B) Proceeds from borrowings.
C) Proceeds from customers.
D) Proceeds from sale of machinery.

Question

Quizplus · Accepted Answer

Proceeds from the sale of machinery would be considered an investing activity because it relates to the acquisition or disposal of long-term assets. The other options, proceeds from dividends and proceeds from borrowings, are financing activities. Proceeds from customers would be categorized as operating activities because it represents revenue from the normal course of business operations.

Which of the Following Items Would Be Classified as Investing