Which of the following would be classified as an investing activity on the statement of cash flows?
A)Cash received from sale of land.
B)Cash paid for interest.
C)Cash received from stock issuance.
D)Dividends paiD.Investing activities include cash inflows and outflows from purchases and disposals of investments and long-lived assets.

Question

Quizplus · Accepted Answer

Cash received from sale of land is a cash inflow from a disposal of a long-lived asset, which is classified as an investing activity on the statement of cash flows.

Answer: C
 Cash received from stock issuance is a cash inflow from the sale of equity investments, which is also classified as an investing activity on the statement of cash flows.

Answer: D
 Dividends paid are classified as a financing activity on the statement of cash flows since they represent cash outflows to stockholders, rather than investments in long-lived assets.

Therefore, the best choices are A and C.

Which of the Following Would Be Classified as an Investing