Which of the following statements is true?
A)Investment in another company's common stock is classified as a cash outflow from financing activities on the Statement of Cash Flows.
B)Repayment of long-term debt is classified as a cash outflow from investing activities on the Statement of Cash Flows.
C)Losses on the sale of long-term assets are an adjustment reported in the operating activities section of the Statement of Cash Flows under the indirect method.

Question

Quizplus · Accepted Answer

Losses on the sale of long-term assets are an adjustment reported in the operating activities section of the Statement of Cash Flows under the indirect method. Investment in another company's common stock is classified as a cash outflow from investing activities, not financing activities. Repayment of long-term debt is classified as a cash outflow from financing activities, not investing activities.

Which of the Following Statements Is True