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 the above is correct.

Question

Quizplus · Accepted Answer

Proceeds from the sale of a plant site are considered a type of investing activity, as they represent a cash inflow resulting from the disposal of a long-term asset. These activities are reported in the investing activities section of the statement of cash flows, alongside other transactions involving the purchase or sale of property, plant, and equipment, investments, and other financial assets.

Proceeds from the Sale of a Plant Site Are