Question
How does the purchase of non -current assets appear on the statement of cash flows? Selected answer will be automatically saved. For keyboard navigation, press up/down arrow keys to select an answer. a as an outflow of cash under operating activities as an inflow of cash under operating activities C as an inflow of cash under investing activities d as an outflow of cash under investing activities
Solution
4.4
(309 Votes)
Sloane
Expert ยท Tutor for 3 years
Answer
The correct answer is **d. as an outflow of cash under investing activities.**The statement of cash flows categorizes cash flows into three main activities: operating, investing, and financing. The purchase of non-current assets (like property, plant, and equipment, or long-term investments) represents a *use* of cash for investment purposes. Therefore, it's shown as a cash *outflow* under the *investing activities* section.