Which of the following represents an investing activity in the statement of cash flows?
A)Depreciation of plant assets
B)Sale of plant assets at a loss
C)Stock dividend
D)Purchase of inventory

Question

Quizplus · Accepted Answer

The sale of plant assets at a loss represents an investing activity because it involves disposing of a long-term asset (plant asset) and receiving cash in exchange. Depreciation (choice A) represents a non-cash operating activity, stock dividends (choice C) represent a financing activity, and the purchase of inventory (choice D) represents an operating activity.

Which of the Following Represents an Investing Activity in the Statement