In a statement of cash flows, the cash flows from investing activities section should report
A) the issuance of common stock in exchange for a factory building.
B) stock dividends received.
C) a major repair to machinery charged to accumulated depreciation.
D) the assignment of accounts receivable.

Question

Quizplus · Accepted Answer

The cash flows from investing activities section should report the purchase or sale of long-term assets such as property, plant and equipment, and investments. A major repair to machinery charged to accumulated depreciation is a capital expenditure that should be reported in the investing activities section. The other choices, such as the issuance of common stock, stock dividends received, and the assignment of accounts receivable, are not investing activities and would be reported in the financing or operating activities sections of the cash flows statement.

In a Statement of Cash Flows, the Cash Flows from Investing