Of the following items,which is not classified as an investing activity on the statement of cash flows?
A)Sale of a plant asset for cash
B)Purchasing land
C)Collecting loans
D)Selling goods and services

Question

Quizplus · Accepted Answer

Selling goods and services is classified as an operating activity on the statement of cash flows, not an investing activity. Investing activities involve the purchase or sale of long-term assets, such as property, plant, and equipment, or investments in securities. A sale of a plant asset for cash (A) is an investing activity, while purchasing land (B) is also an investing activity. Collecting loans (C) can be either an investing or operating activity depending on the nature of the loan.

Of the Following Items,which Is Not Classified as an Investing