Under what section of the Statement of Cash Flows would you report the purchase of an long-term intangibleasset such as a patent for cash?O InvestingO BondsO LeasesO FinancingO Notes: Noncash activityO OperatingASUSf5f6f7[Xf9f10f11%24&47.8RYUGH.5F.图

Statement of cash flows: Statement of cash flow is a financial statement that shows the cash and cash equivalents of a company for a particular period of time. It shows the net changes in cash, by reporting the sources and uses of cash as a result of operating, investing, and financing activities of a company.Answer: Purchase of patent is an investing activity. Thus the correct option is Option “a”. Definition: Cash flow from investing activities: This section of cash flows statement provides information concerning about the purchase and sale of capital assets by the company. Explanation: Purchase of patent: In this case, the company invests the cash by way of purchasing Patent. Hence, this transaction is reported under investing activity section of cash flow statement.

Answered: Under what section of the Statement of…

Business

Accounting

Under what section of the Statement of Cash Flows would you report the purchase of an long-term intangibles asset such as a patent for cash? O Investing

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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