Proceeds from the sale of a plant site are:
A) Reported as an operating activity in the statement of cash flows.
B) Reported as an investing activity in the statement of cash flows.
C) Reported as a financing activity in the statement of cash flows.
D) None of these answer choices are correct.

Question

Quizplus · Accepted Answer

Proceeds from the sale of a plant site are considered to be investing cash flows and should be reported in the investing activities section of the statement of cash flows. This is because the sale of a plant site is related to the company's long-term assets and not its day-to-day operations or financing activities.

Proceeds from the Sale of a Plant Site Are