The proceeds from the sale of motor vehicles will be included in the statement of cash flows as an investing activity.

Here's why:

1. The statement of cash flows is divided into three sections: operating activities, investing activities, and financing activities.

2. Operating activities include the cash effects of transactions that create revenues and expenses. They generally include transactions in the “operations” section of the income statement.

3. Financing activities include cash activities related to noncurrent liabilities and owners’ equity. They involve the inflow of resources from issuing securities and the outflow of resources for the redemption of the business’s debt or equity.

4. Investing activities include making and collecting loans and acquiring and disposing of investments (both debt and equity) and property, plant, and equipment.

5. Since motor vehicles are considered a fixed asset, the sale of such is considered an investing activity. When a company sells a vehicle, it is essentially disposing of an asset, which falls under investing activities.

So, the proceeds from the sale of motor vehicles will be recorded under the investing activities section of the statement of cash flows.

Question

The proceeds from the sale of motor vehicles will be included in the statement of cash flows as an investing activity.

Here's why:

1. The statement of cash flows is divided into three sections: operating activities, investing activities, and financing activities.

2. Operating activities include the cash effects of transactions that create revenues and expenses. They generally include transactions in the “operations” section of the income statement.

3. Financing activities include cash activities related to noncurrent liabilities and owners’ equity. They involve the inflow of resources from issuing securities and the outflow of resources for the redemption of the business’s debt or equity.

4. Investing activities include making and collecting loans and acquiring and disposing of investments (both debt and equity) and property, plant, and equipment.

5. Since motor vehicles are considered a fixed asset, the sale of such is considered an investing activity. When a company sells a vehicle, it is essentially disposing of an asset, which falls under investing activities.

So, the proceeds from the sale of motor vehicles will be recorded under the investing activities section of the statement of cash flows.

Knowee AI · Accepted Answer

The proceeds from the sale of motor vehicles will be included in the statement of cash flows as an investing activity.

Here's why:

1. The statement of cash flows is divided into three sections: operating activities, investing activities, and financing activities.

2. Operating activities include the cash effects of transactions that create revenues and expenses. They generally include transactions in the “operations” section of the income statement.

3. Financing activities include cash activities related to noncurrent liabilities and owners’ equity. They involve the inflow of resources from issuing securities and the outflow of resources for the redemption of the business’s debt or equity.

4. Investing activities include making and collecting loans and acquiring and disposing of investments (both debt and equity) and property, plant, and equipment.

5. Since motor vehicles are considered a fixed asset, the sale of such is considered an investing activity. When a company sells a vehicle, it is essentially disposing of an asset, which falls under investing activities.

So, the proceeds from the sale of motor vehicles will be recorded under the investing activities section of the statement of cash flows.

Proceeds from the sale of motor vehicles will be included in the statement of cash flows as:an operating activitya financing activity.a cash activity.an investing activity.

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