In Which Section Would the Purchase of Land for Cash

question 108

Multiple Choice

In which section would the purchase of land for cash be classified on the statement of cash flows?

• A)operating activities section
• B)investing activities section
• C)financing activities section
• D)does not represent a cash flow

---

Definitions:

Property Taxation

A form of taxation imposed on property owners based on the value of their property.

Income

Money received on a regular basis from work, investments, business operations, or other sources, which is used to fund living expenses, savings, and investments.

Sales Taxation

A tax imposed on the sale of goods and services, which is typically collected by the seller and passed on to the government.

Model Business Corporation Act

A comprehensive statute that serves as a guideline for states in the United States to standardize and regulate the formation, operation, and dissolution of corporations.