Question

On the statement of cash​ flows, which of the following items is classified as an investing​ activity?

a. Borrowing cash from bank
b. Issuing common stock
c. repaying loan with cash
d. collecting cash on long term loan

Answer 1

Collecting cash on a long-term loan is classified as an investing activity on the statement of cash flows.

Step-by-step explanation:

On the statement of cash flows, collecting cash on a long-term loan is classified as an investing activity. Investing activities involve the acquisition and disposal of long-term assets, including cash flows related to loans and lending activities. In this case, collecting cash on a long-term loan represents a decrease in invested capital, which falls under the category of investing activities on the statement of cash flows.