The activities of a corporation that are directed to investing the resources of the corporation over extended periods of time in long-term assets is considered part of which of these activities on the cash flow statement?
A)Operating activities
B)Financing activities
C)Investing activities
D)None of these

Question

Quizplus · Accepted Answer

Investing activities involve the purchase and sale of long-term assets, such as property, plant, and equipment, and investments in securities. Therefore, the activities of a corporation that are directed to investing its resources over extended periods of time in long-term assets would be considered a part of its investing activities on the cash flow statement.

The Activities of a Corporation That Are Directed to Investing