Which of the following is not considered an investing activity when preparing the statement of cash flows?
A)a purchase of equipment
B)a sale of investments
C)payment of dividends
D)payments on notes receivable

Question

Quizplus · Accepted Answer

Payment of dividends is considered a financing activity, not an investing activity, as it involves distribution of profits to shareholders. A purchase of equipment and payments on notes receivable are investing activities, while a sale of investments can be either an investing or financing activity depending on the nature of the investment.

Which of the Following Is Not Considered an Investing Activity