Acquisitions and sales of long-term assets are reported as investing activities on the statement of cash flows.

Question

Quizplus · Accepted Answer

Acquisitions and sales of long-term assets are considered investing activities because they involve transactions related to the purchase or sale of property, equipment, or other long-term assets that are not intended for resale. These activities are reported on the statement of cash flows under the investing section.

Acquisitions and Sales of Long-Term Assets Are Reported as Investing