Question

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

Answer 1

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.