Which of the following would be classified as investing cash flows on a statement of cash flows?
1.Acquiring a building by signing a long-term mortgage payable.
2.Lending cash to others.
3.Issuing stock for cash.
4.Purchasing long-term assets for cash.
5.Selling stock investments for cash.

Question

Which of the following would be classified as investing cash flows on a statement of cash flows? 
1.Acquiring a building by signing a long-term mortgage payable.
2.Lending cash to others.
3.Issuing stock for cash.
4.Purchasing long-term assets for cash.
5.Selling stock investments for cash.

Quizplus · Accepted Answer

Investing cash flows include transactions involving the purchase and sale of long-term assets and investments. Therefore, lending cash to others (2), purchasing long-term assets for cash (4), and selling stock investments for cash (5) are classified as investing activities. Acquiring a building by signing a mortgage (1) is a financing activity, and issuing stock for cash (3) is also a financing activity, not investing.

Which of the Following Would Be Classified as Investing Cash