How are the cash flow effects from the purchase and sale of intangible assets reported on a statement of cash flows?
A)As operating activities
B)As investing activities
C)As financing activities
D)They are not reported on a statement of cash flows.

Question

Quizplus · Accepted Answer

The purchase and sale of intangible assets are considered investing activities and are reported as such on the statement of cash flows. Buying or selling intangible assets would involve cash flows related to investments, and not operations or financing activities.

How Are the Cash Flow Effects from the Purchase and Sale