Final answer:
The purchase of intangible assets is reported under the investing activities section of the Statement of Cash Flows, and it reflects the cash inflow and outflow for long-term assets including non-tangible ones.
Step-by-step explanation:
When considering the purchase of intangible assets on the Statement of Cash Flows (SOCF), this would fall under the section for investing activities. The purchase of intangible assets is reported under the investing activities section of the Statement of Cash Flows, and it reflects the cash inflow and outflow for long-term assets including non-tangible ones.
The inflows and outflows reported in this section are related to the acquisition and disposition of long-term assets and investments, which include those not physically tangible, such as patents, trademarks, and software. In contrast to international flows of financial capital, this part of the SOCF focuses on the cash effects of transactions involving assets intended to provide benefits for more than one year.