Cash paid to purchase long-term investments would be reported in the statement of cash flows as:
A)a decrease in the Operating section.
B)a decrease in the Investing section.
C)an increase in the Financing section.
D)an increase in the Operating section.

Question

Quizplus · Accepted Answer

Cash paid to purchase long-term investments would be reported in the Investing section of the statement of cash flows as it is an investing activity. The Investing section reports cash inflows and outflows related to the acquisition or disposal of long-term assets such as property, plant, and equipment, long-term investments, and intangible assets.

Cash Paid to Purchase Long-Term Investments Would Be Reported in the Statement