Which of the following sections of the statement of cash flows includes purchases and sales of long-term assets?

Question

Quizplus · Accepted Answer

The investing section of the statement of cash flows includes purchases and sales of long-term assets, such as property, plant, and equipment, as well as investments in securities and other businesses. The financing section typically reports on activities related to borrowing and repaying money, issuing and buying back stocks, and paying dividends. The operating section covers the primary sources and uses of cash related to ongoing business operations, such as collections from customers, payments to suppliers, and other operating expenses. The non-cash investing and financing section reports on any significant transactions that did not involve cash, such as the exchange of assets or liabilities, the issuance of stock in exchange for services, or the conversion of debt into equity.

Which of the Following Sections of the Statement of Cash