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8 December, 01:53

In a statement of cash flows, which of the following would be classified as an investing activity?

A. Interest paid to a lender.

B. The issuance of bonds payable.

C. The sale of equipment.

D. The sale of the company's own common stock for cash.

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Answers (1)
  1. 8 December, 02:33
    0
    C. The sale of equipment.

    Explanation:

    Investing activities: It records those activities that include the long-term asset buying and selling. The buying is a cash outflow while the sale is a cash inflow.

    The cash outflow decreases the cash balance whereas cash inflow increases the cash balance. So the buying would be shown in a negative sign while the selling is shown in the positive sign

    Hence, the correct option is C.
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Home » Business » In a statement of cash flows, which of the following would be classified as an investing activity? A. Interest paid to a lender. B. The issuance of bonds payable. C. The sale of equipment. D. The sale of the company's own common stock for cash.
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