The purchase of a new factory would reduce the cash flows from investing activities.

Name: The purchase of a new factory would reduce the cash flows from investing activities.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Investing activities involve cash flows related to the purchase or sale of long-term assets, including property, plant, and equipment (such as a new factory). Therefore, the purchase of a new factory would result in a cash outflow and reduce the overall cash flows from investing activities.

The Purchase of a New Factory Would Reduce the Cash