Which of the following events would be classified as an investing activity on a statement of cash flows?
A) payment of interest on a loan
B) receipt of cash dividends on an available-for-sale investment
C) issuance of common stock
D) sale of an office building at a gain

Question

Quizplus · Accepted Answer

The sale of an office building at a gain is a source of cash and it falls under investing activities. The other options do not relate to investing activities. Payment of interest on a loan is an operating activity. Receipt of cash dividends on an available-for-sale investment is a financing activity (if the investment is in a subsidiary that is using the equity method) or an investing activity (if the investment is not in a subsidiary). Issuance of common stock is a financing activity.

Which of the Following Events Would Be Classified as an Investing