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On the statements of cash flows, when a company buys or sells a long-term asset it is called a:

a) Revenue activity
b) Investment activity
c) Operating activity
d) Financing activity

1 Answer

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Final answer:

When a company buys or sells a long-term asset on the statements of cash flows, it is called an Investment activity.

Step-by-step explanation:

On the statements of cash flows, when a company buys or sells a long-term asset it is called an Investment activity. This activity represents the use or generation of cash related to investments in long-term assets, such as property, plant, and equipment.

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