Asked by
Bisrat Abraham
on Oct 28, 2024
Verified
Which of the following would result when a company purchases a factory building using cash?
A) A noncurrent asset and an investing cash flow are created.
B) A noncurrent asset and a financing cash flow are created.
C) A current asset and an investing cash flow are created.
D) A current asset and a financing cash flow are created.
Noncurrent Asset
A noncurrent asset is a long-term investment or property that a company does not expect to convert into cash within one year.
Investing Cash Flow
Investing cash flow refers to the cash inflows and outflows associated with the purchase and sale of long-term investments and capital assets.
- Decode the differentiation of cash inflows and outflows in the statement of cash flows and their significance for a corporation’s cash reserves.
- Gain insight into the effects that asset purchases have on the balance sheet.
Verified Answer
AS
Learning Objectives
- Decode the differentiation of cash inflows and outflows in the statement of cash flows and their significance for a corporation’s cash reserves.
- Gain insight into the effects that asset purchases have on the balance sheet.
Related questions
Which of the Following Would Be Classified as Investing Cash ...
At the Beginning of April,Warren Corporation's Assets Totaled $240,000 and ...
Which of the Following Would Be Classified as Financing Cash ...
At the Beginning of April,Warren Corporation's Assets Totaled $240,000 and ...
Which One of the Following Classifications Is Found on the ...