Accounting for IGCSE & O level - Accounting Procedures (Section 19 - No. 19)
Which of the following statements is true regarding the disposal of an asset and its impact on the statement of cash flows?
The proceeds from the sale are classified as an operating activity.
The proceeds from the sale are classified as a financing activity.
The proceeds from the sale are classified as an investing activity.
The disposal has no impact on the cash flow statement.
Explanation
Cash inflows from the sale of an asset are categorized as investing activities.
Comments (0)
