Question

Which of the following items is not considered an investing cash flow in the statement of cash flows?

a) Purchase of equipment.
b) Purchase of securities.
c) Issuing common stock for cash.
d) Sale of land.

Answer 1

The item that is not considered an investing cash flow in the statement of cash flows is issuing common stock for cash.

Step-by-step explanation:

The item that is not considered an investing cash flow in the statement of cash flows is c) Issuing common stock for cash.

Investing cash flows are cash flows related to the purchase and sale of long-term assets, such as equipment, land, and securities. They represent the investments made by a company to acquire or dispose of these assets.

The purchase of equipment (a)), purchase of securities (b)), and sale of land (d)) are all examples of investing cash flows because they involve the acquisition or disposal of long-term assets.