The Purchase of Land Is Classified in the Statement of Cash

question 146

Multiple Choice

The purchase of land is classified in the statement of cash flows as a(n) :

• A)Operating activity.
• B)Investing activity.
• C)Financing activity.
• D)Noncash activity.

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Definitions:

Managerial Accounting

The method of pinpointing, quantifying, examining, elucidating, and relaying financial data to managers to help achieve the objectives of an organization.

External Auditors

Independent experts who review the financial statements of a company to ensure accuracy and compliance with accounting standards.

Estimates

Approximations or educated guesses used in accounting to quantify amounts when precise measurements are unavailable or impractical.

Managerial Accounting

Managerial accounting involves the provision of financial information to management for decision-making, planning, and control purposes.