In the statement of cash flows,purchases of fixed assets are considered to be investing activities.

Question

Quizplus · Accepted Answer

Purchases of fixed assets are classified as investing activities in the statement of cash flows as they represent significant investments in long-term assets that are expected to benefit the company over a period of time. These assets include property, plant, and equipment, as well as intangible assets such as patents and copyrights. Investing activities are reported separately in the statement of cash flows to provide users with information about the company's cash flows related to its investing activities.

In the Statement of Cash Flows,purchases of Fixed Assets Are