Question

match whether the cash activity is an investing activity cash inflow, outflow or neither on the statement of cash flows. purchase of property purchase of property drop zone empty. purchase of a copyright purchase of a copyright drop zone empty. sale of property sale of property drop zone empty. issuance of stock issuance of stock drop zone empty. sale of copyright sale of copyright drop zone empty. outflow for tangible asset outflow for intangible asset inflow for tangible asset not an investing activity inflow for intangible asset need help? review these concept resources.

Answer 1

On the statement of cash flows, the purchase of property and copyright are classified as cash outflows for tangible and intangible assets respectively. The sale of property and copyright are cash inflows for tangible and intangible assets, while the issuance of stock is not an investing activity.

Step-by-step explanation:

Matching the cash activities to whether they are an investing activity cash inflow, outflow or neither on the statement of cash flows:

• Purchase of property - Investing activity cash outflow for tangible asset
• Purchase of a copyright - Investing activity cash outflow for intangible asset
• Sale of property - Investing activity cash inflow for tangible asset
• Issuance of stock - Not an investing activity
• Sale of copyright - Investing activity cash inflow for intangible asset