In a statement of cash flows, receipts from sales of property, plant, and equipment and other productive assets should be classified as cash inflows from
A) operating activities.
B) financing activities.
C) investing activities.
D) selling activities.

Question

Quizplus · Accepted Answer

Receipts from sales of property, plant, and equipment and other productive assets are part of a company's investing activities, as they involve the buying and selling of long-term assets that are used in the production of goods and services. Operating activities are the day-to-day operations of the business, while financing activities involve the raising and repayment of capital. Selling activities are not a recognized category in a statement of cash flows.

In a Statement of Cash Flows, Receipts from Sales of Property