A to Z Corporation purchased a building for $80,000 cash.On the Statement of Cash Flows, the transaction would be classified as:
A) Cash Flows from Operating Activities.
B) Cash Flows from Investing Activities.
C) Cash Flows from Financing Activities.
D) Noncash transaction.

Question

Quizplus · Accepted Answer

The purchase of a building is a cash outflow for the purchase of a long-term asset, which is classified as an investing activity in the Statement of Cash Flows.

A to Z Corporation Purchased a Building for $80,000 Cash