When preparing the investing activities section of the cash flow statement under both U.S. GAAP and IFRS, firms report acquisitions of fixed assets separate from sales of fixed assets.

Question

Quizplus · Accepted Answer

Both U.S. GAAP and IFRS require that cash flows from acquisitions and sales of fixed assets be reported separately in the investing activities section of the cash flow statement.

When Preparing the Investing Activities Section of the Cash Flow