Under the indirect method of preparing a statement of cash flows,cash disbursed for the acquisition of a capital asset is:
A) added in the investing activities section
B) added in the financing activities section
C) subtracted in the operating activities section
D) subtracted in the investing activities section

Question

Quizplus · Accepted Answer

Cash disbursed for the acquisition of a capital asset is a cash outflow related to investing activities and is subtracted in the investing activities section of the indirect method statement of cash flows.

Under the Indirect Method of Preparing a Statement of Cash