Chapter 12, Problem 2DQ

To determine

Cash Flow Statement:

Cash flow statement is that statement in which, transaction related to cash inflow and outflow are recorded. It is mandatory report and included in the financial statement of the company. It is divided into three parts operating activities, investing activities, and financial activities.

Investing Activity:

Investing activity is the third part of the cash flow statement which gives the information related to the acquisition and disposal of the long term assets of the company such as land and building, investment and plant and machinery.

To identify: Investing activities reported on the statement of the cash flow.