In the context of a firm's statement of cash flows, ________ include the purchase, sale, or investment in fixed assets, such as real estate, equipment, and buildings.
A) operating activities
B) investing activities
C) capital activities
D) financing activities
E) liquidity activities

Question

Quizplus · Accepted Answer

Investing activities include transactions involving fixed assets, such as the purchase, sale, or investment in real estate, equipment, and buildings. Operating activities involve the day-to-day business operations and financing activities involve transactions involving debt or equity financing. Capital activities and liquidity activities are not commonly used terms in the context of a firm's statement of cash flows.

In the Context of a Firm's Statement of Cash Flows