The statement of cash flows would disclose the purchase of a building for cash
A)nowhere on the statement.
B)in the operating activities section.
C)in the investing activities section.
D)in the financing activities section.

Question

Quizplus · Accepted Answer

The purchase of a building for cash is a typical investing activity and would appear in the investing activities section of the statement of cash flows, which reports cash inflows and outflows related to the acquisition and disposal of long-term assets. It would not be reported in the operating activities section, which reports cash flows from day-to-day operations, nor in the financing activities section, which reports cash flows from debt and equity financing.

The Statement of Cash Flows Would Disclose the Purchase of a Building