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

---

Definitions:

FASB

Financial Accounting Standards Board, an independent nonprofit organization responsible for establishing accounting and financial reporting standards for companies and nonprofits in the United States.

Financial Statements

Reports that summarize the financial performance and financial position of a business, including the balance sheet, income statement, and cash flow statement.

Impaired Asset

An asset that has a market value significantly below its carrying amount on the balance sheet, indicating that recoverable amount is less than its book value, necessitating a write-down.

Depreciation Expense

The monetary value reduction in an asset's cost over its useful life due to wear and tear, age, or obsolescence.