Which of the following represents an investing activity in the statement of cash flows
A) depreciation of plant assets
B) sale of plant assets at a loss
C) stock dividend
D) purchase of inventory

Question

Quizplus · Accepted Answer

Sale of plant assets at a loss is an investing activity because it involves the sale of a long-term asset that was used in the operations of the business (such as machinery or equipment). Depreciation of plant assets is a non-cash expense and therefore not considered an investing activity. Stock dividends are a distribution of profits to shareholders and not related to investing activities. Purchase of inventory is a cash outflow related to operating activities.

Which of the Following Represents an Investing Activity in the Statement