If a company has both an inflow and outflow of cash related to property, plant, and equipment, the ______________ in the investing activities section.
A)two cash effects must be netted and presented as one item
B)cash inflow and cash outflow must be reported separately
C)cash outflow is only is presented
D)cash inflow and cash outflow can either be reported separately or presented as one item

Question

Quizplus · Accepted Answer

According to accounting standards, cash inflows and outflows related to investing activities must be reported separately to provide clear information about the sources and uses of cash.

If a Company Has Both an Inflow and Outflow of Cash