Asked by LeeAnn Tiffany on Jun 30, 2024
Verified
Buying property, plant, or equipment would be reported as a cash outflow on the investing activities section of the statement of cash flows.
Investing Activities
These activities generate cash inflows and outflows related to acquiring or disposing of noncurrent assets such as property, plant, and equipment, long-term investments, and loans to another entity.
Cash Outflow
Cash outflow refers to the movement of money out of a business, mainly through expenses, purchases, or investments, over a period.
Buying Property
The process of acquiring ownership of land or buildings, typically for residential, commercial, or investment purposes.
- Understand the treatment of transactions involving the sale and purchase of equipment and their impact on cash flows.
Verified Answer
Learning Objectives
- Understand the treatment of transactions involving the sale and purchase of equipment and their impact on cash flows.
Related questions
A Business Sold Equipment for $8,000 in Cash Proceeds Which ...
A Decrease to Merchandise Inventory Results in What Condition ...
The Comparative Balance Sheets of Barry Company, for Years 1 ...
State the Section (S) of the Statement of Cash Flows ...
On the Basis of the Following Data for Branch Co ...