The sale of equipment at book value would be reported on a statement of cash flows under:

Question

Quizplus · Accepted Answer

The sale of equipment at book value would be reported under investing activities because it represents the sale of a long-term asset. The book value represents the cost of the asset minus accumulated depreciation, so the cash received from the sale represents a return of the investment in that asset rather than financing activity such as issuing or repurchasing stock, or borrowing money.

The Sale of Equipment at Book Value Would Be Reported