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 payable
C) sale of common shares
D) receipt of dividend income from investments

Question

Quizplus · Accepted Answer

Investing activities involve the acquisition or disposal of long-term assets, such as investments in bonds, stocks, or property. Therefore, the purchase of bonds payable would be an example of an investing activity on the Statement of Cash Flows. The issuance of bonds payable would be classified as a financing activity, the sale of common shares would be classified as a financing or investing activity depending on the intent of the sale, and the receipt of dividend income from investments would be classified as an operating activity.

Which of the Following Would Be an Example of an Investing