Question

Which would be added in the Investing Activities section of the Statement of Cash Flows? Select one: a. Proceeds from Condemnation of Land b. Stock split c. Cash paid for unexpected major equipment repairs d. Investment income recorded using the equity method

Answer 1

• a. Proceeds from Condemnation of Land
• c. Cash paid for unexpected major equipment repairs

Step-by-step explanation:

The Cash Flow statement records only activities that affect the cashflow of the company. The Investing Activity section of the Cashflow statement deals with capital goods (PPE) and investments in other company securities.

The proceeds from land condemnation will go to the Investing activities section as it has to do with capital goods and the cash paid for unexpected major equipment repairs will see the equipment being used in the long term so it goes to Investing as well.