The calculation of the capital acquisitions ratio uses the cash expenditures for property,plant,and equipment that are reported in the financing activities section of the Statement of Cash Flows.
BT: Knowledge

Question

Quizplus · Accepted Answer

The capital acquisitions ratio uses the cash expenditures for property, plant, and equipment reported in the investing activities section of the Statement of Cash Flows, not the financing activities section.

The Calculation of the Capital Acquisitions Ratio Uses the Cash