Which of the following would be an example of an investing activity on the Statement of Cash Flows?
A) purchase of capital assets
B) sale of preferred shares
C) repurchase of shares issued
D) dividends paid to shareholders

Question

Quizplus · Accepted Answer

The purchase of capital assets is considered an investing activity as it involves the acquisition of long-term assets that are expected to provide economic benefit to the company over multiple years. The sale of preferred shares and repurchase of shares issued are financing activities, while the payment of dividends to shareholders is an operating activity.

Which of the Following Would Be an Example of an Investing