Which of the Following Would Result When a Company Purchases

question 65

Multiple Choice

Which of the following would result when a company purchases a factory building using cash?

• A)A noncurrent asset and an investing cash flow are created.
• B)A noncurrent asset and a financing cash flow are created.
• C)A current asset and an investing cash flow are created.
• D)A current asset and a financing cash flow are createD.Buildings are classified as noncurrent assets.Investing cash flows are created with the purchase or sale of noncurrent assets.

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Definitions:

Basic Elements

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