_________ is an investing cash flow and ________ is a financing cash flow, as reported on the Statement of Cash Flows.

Question

Quizplus · Accepted Answer

Purchasing land is an investing cash flow because it involves the acquisition of a long-term asset that is expected to generate future benefits. Repaying a bank loan is a financing cash flow because it involves paying off a liability, which is a source of funding used to finance business activities. The other choices involve activities that are either not typically reported on the statement of cash flows (issuing bonds, lending cash to an employee) or are classified as operating cash flows (selling investments, receiving cash from the sale of inventory, paying cash dividends).

_________ Is an Investing Cash Flow and ________ Is a Financing

_ Is an Investing Cash Flow and Is a Financing