Final answer:
Cash paid for land acquisition is recorded as an investing activity in the investing section of the statement of cash flows.
Step-by-step explanation:
Money paid for the acquisition of land is classified as an investing activity on a company's statement of cash flows. Since land is a long-term asset, the cash outflow for its purchase reflects the company's investment in physical resources that are expected to provide future economic benefits.
As such, this outflow will be reported in the investing section of the cash flow statement rather than the operating or financing sections. Examples of other cash outflows under investing activities include the purchase of property, plant, and equipment.