The purchase of land is classified in the statement of cash flows as a(n):

Question

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The purchase of land is an investing activity because it involves the acquisition of a long-term asset that will be used in the business. Investing activities involve the purchase or sale of long-term assets, such as property, plant, and equipment, as well as investments in other companies. Operating activities are related to the day-to-day operations of the business, such as sales and expenses, while financing activities involve the raising or repayment of funds, such as issuing stock or paying dividends.

The Purchase of Land Is Classified in the Statement of Cash