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Depreciation of Plant Assets Is Reported as an Investing Activity

question 27

True/False

Depreciation of plant assets is reported as an investing activity on the statement of cash flows.


Definitions:

Financial Investment

The purchase of a financial asset (such as a stock, bond, or mutual fund) or real asset (such as a house, land, or factories) or the building of such assets in the expectation of financial gain.

Certificate of Deposit

A savings certificate with a fixed maturity date and specified fixed interest rate, often issued by banks.

Opportunity Costs

The value of the best alternative that must be foregone as a result of choosing a particular option.

Forgoing

The act of giving up something, typically as a sacrifice or in order to choose another option.

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