The cash purchase of 80% interest in a firm with no liabilities would be shown on the consolidated statement of cash flows as

Question

Quizplus · Accepted Answer

The cash purchase of an 80% interest in a firm with no liabilities would be classified as an investing activity on the consolidated statement of cash flows, as it represents an acquisition of a significant long-term asset. The remaining options (operating and financing activities) do not align with this transaction.

The Cash Purchase of 80% Interest in a Firm with No