Proceeds from the sale of investments in common stock accounted for by the equity method would be classified into which of the following sections of the statement of cash flows?
A) Operating
B) Investing
C) Financing
D) Non-cash item

Question

Quizplus · Accepted Answer

Proceeds from the sale of investments in common stock are considered to be investing activities, as they involve the sale of a long-term asset. Operating activities involve the day-to-day operations of the business, while financing activities involve the acquisition or repayment of long-term liabilities or equity. Non-cash items refer to items that do not involve the exchange of cash, such as depreciation or amortization expenses.

Proceeds from the Sale of Investments in Common Stock Accounted