On a statement of cash flows for a manufacturer of digital thermometers, the cash flows from investment activities section would include:
A)the money borrowed from the bank to start the company
B)the sale of land adjacent to the manufacturer's administrative office building
C)repayment of long-term loan by a wholesaler of weather-related items
D)purchase of new box of copy paper
E)increases in the manufacturer's inventory

Question

Quizplus · Accepted Answer

The sale of land adjacent to the manufacturer's administrative office building is considered an investment activity because it involves the sale of a long-term asset. Cash flows from investment activities include transactions for the acquisition and disposal of long-term assets and other investments not included in cash equivalents.

On a Statement of Cash Flows for a Manufacturer of Digital