Which section of the cash flow statement would you find the sale of a piece of equipment?

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Master the UCF ACG2021 Principles of Financial Accounting Final Exam. Study with comprehensive practice tests, flashcards, and multiple choice questions, each with detailed explanations. Ace your exam!

The sale of a piece of equipment is categorized under investing activities in the cash flow statement. This section reflects cash transactions for the purchase and sale of physical assets, investments, and securities. When equipment is sold, it usually results in cash inflow, indicating a disposal of long-term assets, which aligns with the purpose of the investing activities section to track how the company is generating and using cash through its investments in fixed assets.

In contrast, financing activities pertain to cash transactions related to raising or repaying capital, such as issuing shares or taking out loans. Operating activities involve cash flows from a company's primary business operations, including revenues and expenses. Non-cash activities are transactions that do not involve cash exchanges and are not included in the cash flow statement, such as depreciation or asset conversions. Thus, the sale of a piece of equipment clearly fits within the investing activities category.