cash transactions involving the purchase and sale of long-term assets and current investments are classified on the statement of cash flows as activities.

Respuesta :

When such transactions involving long-term assets and current investments are put into the statement of cashflows, they are classified as Investing activities.

Investing Activities:

  • Include the purchase or selling of fixed assets
  • Also include transactions involving investments in other companies in terms of shares and bonds

Long-term assets are fixed assets and current investments refer to those in other companies so these are considered investing activities.

In conclusion, these are investing activities.

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