When a corporation purchases a building for cash, it:
A) does not affect the cash flow statement.
B) is shown as an investing activity.
C) is shown as a financing activity.
D) is shown as an operating activity.

Question

Quizplus · Accepted Answer

Purchasing a building for cash is classified as an investing activity on the cash flow statement because it involves the acquisition of a long-term asset.

When a Corporation Purchases a Building for Cash, It