On the statement of cash flows, in which section would the purchase of land appear?
A) Operating activities
B) Investing activities
C) Financing activities
D) Noncash activities

Question

Quizplus · Accepted Answer

The purchase of land is considered an investing activity, as it involves acquiring a long-term asset for the business. The investing activities section of the statement of cash flows reports on the cash flows associated with the purchase and sale of long-term assets, such as property, plant, and equipment, as well as investments in securities and other businesses.

On the Statement of Cash Flows, in Which Section Would