How would the purchase of land affect the statement of cash flows investing section-indirect method?
A) It would affect the investing section positively.
B) It would affect the investing section negatively.
C) It would decrease the operating section of the statement of cash flows.
D) Does not affect the cash flow from investing.

Question

Quizplus · Accepted Answer

Purchasing land is considered an investment activity, and it results in cash outflow, thus negatively affecting the investing section of the statement of cash flows.

How Would the Purchase of Land Affect the Statement of Cash