Identify the type of activity in which the purchase of long-term asset is classified in the statement of cash flows .

Question

Want to see more full solutions like this?

Answer 1

Question

Chapter 11, Problem 1SSQ

To determine

Identify the type of activity in which the purchase of long-term asset is classified in the statement of cash flows.

Expert Solution & Answer

Answer to Problem 1SSQ

b. Investing activity

Explanation of Solution

Investing activities: Investing activities includes cash inflows and cash outflows from purchase and sale of land or equipment, or investments.

Option (a): The purchase of a long-term asset is classified in the statement of cash flows as investing activities. Thus, option (a) is incorrect answer.

Option (b): The purchase of a long-term asset is classified in the statement of cash flows as investing activities. Thus, option (b) is correct answer.

Option (c): The purchase of a long-term asset is classified in the statement of cash flows as investing activities. Thus, option (c) is incorrect answer.

Option (d): The purchase of a long-term asset is classified in the statement of cash flows as investing activities. Thus, option (d) is incorrect answer.

Conclusion

Therefore, option (b) investing activity is the correct answer.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Students have asked these similar questions

Compute predetermined overhead rate ? please don't use ai and if you cant understand given values please don't answer question otherwise unhelpful will be given.

please give me true answer accounting question

please give me true answer

Answer 2

Question

Chapter 11, Problem 1SSQ

To determine

Identify the type of activity in which the purchase of long-term asset is classified in the statement of cash flows.

Expert Solution & Answer

Answer to Problem 1SSQ

b. Investing activity

Explanation of Solution

Investing activities: Investing activities includes cash inflows and cash outflows from purchase and sale of land or equipment, or investments.

Option (a): The purchase of a long-term asset is classified in the statement of cash flows as investing activities. Thus, option (a) is incorrect answer.

Option (b): The purchase of a long-term asset is classified in the statement of cash flows as investing activities. Thus, option (b) is correct answer.

Option (c): The purchase of a long-term asset is classified in the statement of cash flows as investing activities. Thus, option (c) is incorrect answer.

Option (d): The purchase of a long-term asset is classified in the statement of cash flows as investing activities. Thus, option (d) is incorrect answer.

Conclusion

Therefore, option (b) investing activity is the correct answer.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

Chapter 11, Problem 1SSQ

To determine

Identify the type of activity in which the purchase of long-term asset is classified in the statement of cash flows.

Expert Solution & Answer

Answer to Problem 1SSQ

b. Investing activity

Explanation of Solution

Investing activities: Investing activities includes cash inflows and cash outflows from purchase and sale of land or equipment, or investments.

Option (a): The purchase of a long-term asset is classified in the statement of cash flows as investing activities. Thus, option (a) is incorrect answer.

Option (b): The purchase of a long-term asset is classified in the statement of cash flows as investing activities. Thus, option (b) is correct answer.

Option (c): The purchase of a long-term asset is classified in the statement of cash flows as investing activities. Thus, option (c) is incorrect answer.

Option (d): The purchase of a long-term asset is classified in the statement of cash flows as investing activities. Thus, option (d) is incorrect answer.

Conclusion

Therefore, option (b) investing activity is the correct answer.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 11, Problem 1SSQ

To determine

Identify the type of activity in which the purchase of long-term asset is classified in the statement of cash flows.

Expert Solution & Answer

Answer to Problem 1SSQ

b. Investing activity

Explanation of Solution

Investing activities: Investing activities includes cash inflows and cash outflows from purchase and sale of land or equipment, or investments.

Option (a): The purchase of a long-term asset is classified in the statement of cash flows as investing activities. Thus, option (a) is incorrect answer.

Option (b): The purchase of a long-term asset is classified in the statement of cash flows as investing activities. Thus, option (b) is correct answer.

Option (c): The purchase of a long-term asset is classified in the statement of cash flows as investing activities. Thus, option (c) is incorrect answer.

Option (d): The purchase of a long-term asset is classified in the statement of cash flows as investing activities. Thus, option (d) is incorrect answer.

Conclusion

Therefore, option (b) investing activity is the correct answer.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 11, Problem 1SSQ

To determine

Identify the type of activity in which the purchase of long-term asset is classified in the statement of cash flows.

Expert Solution & Answer

Answer to Problem 1SSQ

b. Investing activity

Explanation of Solution

Investing activities: Investing activities includes cash inflows and cash outflows from purchase and sale of land or equipment, or investments.

Option (a): The purchase of a long-term asset is classified in the statement of cash flows as investing activities. Thus, option (a) is incorrect answer.

Option (b): The purchase of a long-term asset is classified in the statement of cash flows as investing activities. Thus, option (b) is correct answer.

Option (c): The purchase of a long-term asset is classified in the statement of cash flows as investing activities. Thus, option (c) is incorrect answer.

Option (d): The purchase of a long-term asset is classified in the statement of cash flows as investing activities. Thus, option (d) is incorrect answer.

Conclusion

Therefore, option (b) investing activity is the correct answer.

Answer 6

Chapter 11, Problem 1SSQ

To determine

Identify the type of activity in which the purchase of long-term asset is classified in the statement of cash flows.

Expert Solution & Answer

Answer to Problem 1SSQ

b. Investing activity

Explanation of Solution

Investing activities: Investing activities includes cash inflows and cash outflows from purchase and sale of land or equipment, or investments.

Option (a): The purchase of a long-term asset is classified in the statement of cash flows as investing activities. Thus, option (a) is incorrect answer.

Option (b): The purchase of a long-term asset is classified in the statement of cash flows as investing activities. Thus, option (b) is correct answer.

Option (c): The purchase of a long-term asset is classified in the statement of cash flows as investing activities. Thus, option (c) is incorrect answer.

Option (d): The purchase of a long-term asset is classified in the statement of cash flows as investing activities. Thus, option (d) is incorrect answer.

Conclusion

Therefore, option (b) investing activity is the correct answer.

Answer 7

Chapter 11, Problem 1SSQ

To determine

Identify the type of activity in which the purchase of long-term asset is classified in the statement of cash flows.

Answer 8

Expert Solution & Answer

Answer to Problem 1SSQ

b. Investing activity

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Explanation of Solution

Investing activities: Investing activities includes cash inflows and cash outflows from purchase and sale of land or equipment, or investments.

Option (a): The purchase of a long-term asset is classified in the statement of cash flows as investing activities. Thus, option (a) is incorrect answer.

Option (b): The purchase of a long-term asset is classified in the statement of cash flows as investing activities. Thus, option (b) is correct answer.

Option (c): The purchase of a long-term asset is classified in the statement of cash flows as investing activities. Thus, option (c) is incorrect answer.

Option (d): The purchase of a long-term asset is classified in the statement of cash flows as investing activities. Thus, option (d) is incorrect answer.