Acquisitions of non-current assets
A)Have no impact on cash flows
B)Are investing activities
C)Can involve cash outflows
D)Are investing activities and can involve cash outflows
E)Have no impact on cash flows and are investing activities

Question

Quizplus · Accepted Answer

Acquisitions of non-current assets represent investing activities on the statement of cash flows. These activities involve cash outflows as the company is spending money on the purchase of long-term assets. Therefore, the correct option is D, which states that acquisitions of non-current assets are investing activities and can involve cash outflows.

Acquisitions of Non-Current Assets