In a statement of cash flows, increases or decreases in noncurrent assets are most closely associated with
A)operating activities
B)investing activities
C)financing activities.
D)investing or financing activities

Question

Quizplus · Accepted Answer

Increases or decreases in noncurrent assets, such as property, plant, and equipment, are typically associated with investing activities, as they represent the acquisition or disposal of long-term assets used in the business. Operating activities relate to the company's primary business operations and financing activities involve the raising or repayment of funds from investors or creditors. However, it is possible for changes in noncurrent assets to also involve financing activities if they are related to borrowing or repayment of long-term debt.

In a Statement of Cash Flows, Increases or Decreases in Noncurrent