Question

Which of the following would appear in the investing activities of the cash flow statement?

1) cash outflow for supplies
2) cash inflow from interest revenue
3) cash inflow from issuance of common stock
4) cash outflow for the purchase of land

Answer 1

The cash outflow for the purchase of land would appear in the investing activities section of the cash flow statement, as it relates to the acquisition of long-term assets. operating activities, nor does it include transactions related to financing like issuing common stock or earning interest.

Step-by-step explanation:

The question asks about which items would be listed under investing activities in the cash flow statement. Among the options provided, the cash outflow for the purchase of land would appear in the investing activities section. Investing activities are financial transactions related to the acquisition and disposal of long-term assets and other investments.

This does not include operational transactions such as purchasing supplies, which would be under operating activities, nor does it include transactions related to financing like issuing common stock or earning interest, which are categorized under financing activities and operating activities, respectively.