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What are some examples of investing activities?

Investing activities are identified with changes in a corporation’s long-term assets. Investing activities are reported in a separate section of the financial statement, statement of Cash Flows (SCF) - also referred to as the cash flow statement.

Examples of investing activities include the acquisition (purchase) of long-term investments, equipment used in
the business, a building used in the business, and so on. The purchase of these long-term assets is shown as a negative amount in the investing activities section of the SCF, because the acquisition will use (will reduce) cash.
Investing activities also include the sale of long-term investments and the sale of long-term assets that had been used in the business. The proceeds (money received) from the sale of long-term assets will also be reported in the investing activities section of the cash flow statement. The money received will appear as a positive amount, since the effect on cash is positive. The sale is providing or increasing the company’s cash.



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