Question

Investing Activities Components (Negative and Positve Amount)

Increase in land --> __ __ (since it represents purchase of land)

Answer 1

When there is an increase in land, it is considered a negative amount since it represents the purchase of land as a long-term asset in investing activities.

Step-by-step explanation:

Investing activities components in financial reporting refer to the cash flows resulting from a company's investment in long-term assets. When there is an increase in land, it is considered a negative amount since it represents the purchase of land. This means that the company has used its cash to acquire the land as a long-term asset.