A Software Company Acquires a Smaller Company in Order to Acquire

question 26

Multiple Choice

A software company acquires a smaller company in order to acquire the patents that it holds. Where will the cost of this acquisition be recorded on the statement of cash flows?

• A) as an outflow under operating activities
• B) as an outflow under investment activities
• C) as an outflow under financial activities
• D) not recorded on the statement of cash flows

---

Definitions:

Violent Traditions

Practices or customs within a society that involve or endorse violence, often passed down through generations.

Sexual Exclusiveness

Sexual exclusiveness refers to the practice of having sexual relations with only one partner, typically in the context of a romantic or marital relationship.

Homosexuality

A sexual orientation characterized by romantic or sexual attraction between individuals of the same sex or gender.

Married Couples

Two people who are legally united in marriage and share a mutual commitment to their relationship.