The purchase of long-term investments would appear on a cash flow statement in the:
A) would not appear on a cash flow statement
B) financing activities section
C) investing activities section
D) operating activities section

Question

Quizplus · Accepted Answer

The purchase of long-term investments is considered an investing activity and will be reported in the investing activities section of the cash flow statement. This section includes any cash flows related to the acquisition or disposal of long-term assets, such as property, plant, and equipment, as well as long-term investments in stocks, bonds, or other securities. The investing activities section provides insight into the company's investments in its own future growth and expansion.

The Purchase of Long-Term Investments Would Appear on a Cash