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Which cashflow activity does the sale of land for cash classify as? Cash inflow or outflow?

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Final answer:

The sale of land for cash is a cash inflow in investing activities. A trade surplus means capital inflow to an economy, whereas a trade deficit indicates capital outflow.

Step-by-step explanation:

The sale of land for cash is classified as a cash inflow in investing activities under the cash flow statement. It represents money coming into the business from the sale of a long-term asset. In contrast, a trade surplus indicates an overall inflow of financial capital to an economy, as it means the value of exports exceeds the value of imports. A trade deficit, conversely, represents an overall outflow of financial capital, as it implies more money is leaving the economy to pay for imports than is entering from exports.

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