Asked by Ashreet Dhiman on Apr 28, 2024
Verified
The sale of fixed assets represents an investing activity.
Fixed Assets
Long-term assets that a company uses in the production of its goods and services, such as buildings, machinery, and equipment, which are not expected to be converted into cash in the short term.
Investing Activity
Financial transactions related to an entity's investments in long-term assets, including property, plant, equipment, and securities.
- Recognize the categories of activities detailed in the cash flow statement (operating, investing, and financing) and the type of transactions included in each.
Verified Answer
ZK
Zybrea KnightMay 04, 2024
Final Answer :
True
Explanation :
The sale of fixed assets involves a change in long-term assets held by a company, which is considered to be an investing activity according to the statement of cash flows.
Learning Objectives
- Recognize the categories of activities detailed in the cash flow statement (operating, investing, and financing) and the type of transactions included in each.