Shortway Company purchased a piece of land to build a warehouse.In its statement of cash flows,the purchase of land would be shown as cash flow used in which of the following?

Question

Quizplus · Accepted Answer

The purchase of land for building a warehouse is a part of the company's investing activities. Investing activities involve the acquisition or sale of long-term assets such as property, plant, and equipment, and other investments. Cash flows used in investing activities are reported in the statement of cash flows under the category of investing activities.

Shortway Company Purchased a Piece of Land to Build a Warehouse.In