Question

The following item would be classified as an investing activity on the statement of cash flows: a. Proceeds from borrowing. b. Sale of goods. c. Sale of property. d. Payment to lenders.

1) Proceeds from borrowing.
2) Sale of goods.
3) Sale of property.
4) Payment to lenders.

Answer 1

The item that would be classified as an investing activity on the statement of cash flows is the sale of property.

Step-by-step explanation:

The item that would be classified as an investing activity on the statement of cash flows is c. Sale of property.

Investing activities involve the acquisition or sale of long-term assets like property, plant, and equipment. The sale of property represents the disposal of a long-term asset, which is considered an investing activity.