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 Statement of Cash Flows?
A)Operating activities
B)Financing activities
C)Investing activities
D)none of these

Question

Quizplus · Accepted Answer

Investing activities involve the acquisition and disposal of long-term assets, such as property, plant, and equipment, and investments in other companies. Therefore, the activities of a corporation that are directed to investing the resources of the corporation over extended periods of time in long-term assets are considered part of investing activities on the Statement of Cash Flows.

The Activities of a Corporation That Are Directed to Investing