Acquisitions of long-term assets:
A) Have no impact on cash flows.
B) Are investing activities.
C) Can involve cash outflows.
D) Are investing activities and can involve cash outflows.
E) Have no impact on cash flows and are investing activities.

Question

Quizplus · Accepted Answer

Acquisitions of long-term assets are considered investing activities, as they involve the acquisition of assets that are expected to generate future economic benefits. These acquisitions can also involve cash outflows, as they often require the payment of cash or the issuance of debt to finance the purchase.

Acquisitions of Long-Term Assets