Question

the ______ section of the statement of cash flows includes increases and decreases in long - term assets
a. non - cash operating activities
b. investing activities
c. financing activities
d. operating activities

Explanation:

To determine the correct section of the statement of cash flows, we analyze each option:

• Option A: Non - cash operating activities are not related to long - term asset changes. They deal with non - cash items in day - to - day operations.
• Option B: Investing activities in the statement of cash flows are concerned with the acquisition and disposal of long - term assets (such as property, plant, equipment, and investments in other companies). So, increases and decreases in long - term assets are part of investing activities.
• Option C: Financing activities are related to the capital structure of the company, like issuing or repurchasing stock, issuing or repaying debt. They do not involve long - term asset changes.
• Option D: Operating activities are about the main revenue - generating activities of the business, like cash from sales, payments to suppliers, etc. They do not deal with long - term assets.

Answer:

B. investing activities