Question

[11] Which of the following transactions should be classified as investing activities on an entity’s statement of cash flows? A. Increase in accounts receivable. B. Sale of property, plant, and equipment. C. Payment of cash dividend to the shareholders. D. Issuance of common stock to the shareholders.

Answer 1

Answer: "B. Sale of property, plant, and equipment.". should be classified as investing activities on an entity’s statement of cash flows.

Explanation: Among the investment activities are payments from the acquisition of non-current assets, such as property, plant, and equipment, as well as income from the sale of these.