Which of the following would be an example of an investing activity on the Statement of Cash Flows?
A)issuance of bonds payable
B)purchase of bonds as an investment
C)issuance of common shares
D)collection of rent from tenants

Question

Quizplus · Accepted Answer

Purchase of bonds as an investment is an example of an investing activity on the Statement of Cash Flows. Investing activities are those that involve the acquisition or disposal of long-term assets or investments, such as property, plant and equipment or stocks and bonds. Issuance of bonds payable and common shares are financing activities, while collection of rent from tenants is an operating activity.

Which of the Following Would Be an Example of an Investing