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

Question

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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.

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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.

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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.

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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.

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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.