The cash inflow from the sale of a business asset other than inventory is reported in the investing activities section of the statement of cash flows.

Question

Quizplus · Accepted Answer

Cash inflows and outflows related to investing activities, which involve buying or selling long-term assets, are reported in the investing activities section of the statement of cash flows. The sale of non-inventory business assets, such as land or equipment, would be included in this section as a cash inflow.

The Cash Inflow from the Sale of a Business Asset