In Which Section Would the Purchase of Land for Cash

question 93

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

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Definitions:

Subordinated Debt

A class of debt that ranks below other debts with regard to claims on assets or earnings in the case of liquidation or bankruptcy.

Warrants

Financial derivatives that give the holder the right, but not the obligation, to buy or sell a security (usually equity) at a certain price before expiration.

Federally Registered

Designation indicating that an entity or activity has been officially recorded or acknowledged by the federal government.

Capital

Financial assets or resources that individuals or organizations use to fund their operations and invest in their future growth.