Jill purchased a lot (i.e., land) for $35,000 on which to build her store. what kind of activity on a statement of cash flows does this exemplify?

Respuesta :

The answer is Investing activity.

Purchasing land to build store is an Investing activity because Investing activity includes purchases and sale of Fired assets.

What is Investing activity?

  • Investing activities include the acquisition of physical assets, the purchase of securities, and the selling of securities or assets.
  • Negative cash flow from investment operations may not be a bad indicator if management is investing in the company's long-term health.
  • Investing activities include the purchase and sale of long-term assets and other investments that are not cash equivalents. Investing operations involve the acquisition and selling of long-term or fixed assets such as machinery, furniture, land, and buildings, among other things.

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