Indicate where the event purchased land and a building with a mortgage would appear, if at all, on the indirect statement of cash flows.
A) Operating activities section
B) Investing activities section
C) Financing activities section
D) Does not represent a cash flow

Question

Quizplus · Accepted Answer

Purchasing land and a building with a mortgage does not involve an immediate cash outflow, as the transaction is financed through a mortgage. Therefore, it does not appear as a cash flow in the indirect statement of cash flows.

Indicate Where the Event Purchased Land and a Building with a Mortgage