In a statement of cash flows,receipts from sales of property,plant,and equipment should be classified as a(n):
A)Operating activity.
B)Financing activity.
C)Investing activity.
D)Selling activity.

Question

Quizplus · Accepted Answer

Receipts from sales of property, plant, and equipment represent a cash inflow from a disposal of a long-term asset, which is an investing activity. This activity reflects a change in the company's investing activities, and it is not related to operating or financing activities.

In a Statement of Cash Flows,receipts from Sales of Property,plant,and