Cash received from the sale of land would be classified in the statement of cash flows as investing activity.

Question

Quizplus · Accepted Answer

Cash received from the sale of land is considered an investing activity because it involves the purchase or disposal of long-term assets. The statement of cash flows categorizes cash flow activities into three types: operating, investing, and financing. Investing activities involve the purchase or disposal of long-term assets, such as property, equipment, and investments, and the cash flows related to those transactions.

Cash Received from the Sale of Land Would Be Classified