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Which Statement Concerning the Treatment of the Purchase and Sale

Question 7

Multiple Choice

Which statement concerning the treatment of the purchase and sale of non-current assets in a statement of cash flows is incorrect?


A) The carrying value of a non-current asset that has been sold is treated as an investing outflow.
B) The proceeds of sale from a non-current asset are treated as an investing inflow.
C) The cash purchase of a non-current asset is treated as an investing outflow.
D) Inflows and outflows for the purchase and sale of non-current assets must not be netted off against each other.

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