Indicate Where the Purchase of Land for Cash Would Appear

question 151

Multiple Choice

Indicate where the purchase of land for cash would appear if at all on the indirect 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:

Gross Margin

The difference between sales revenue and the cost of goods sold, indicating the profitability of a company's core activity.

Net Operating Income

The profit generated from a company's operational activities, excluding taxes and interest.

Return on Total Assets

Return on Total Assets (ROTA) is a financial ratio that measures a company's profitability relative to its total assets.

Income Statement

A financial statement that shows the company's revenues and expenses over a specific period, leading to its net income or loss.