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What type of activity would this be considered on Cash Flow Statement?


Buying land and a building with a cash down-payment and financing the rest through a note payable.

Not sure if it would be an investing or financing activity.

538 day(s) ago

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DougCPA 		Well, if the land and building are purchased for business use, that would be a financing activity.

If the land and building are purchased solely with the objective of earning a positive return by holding them and selling them later for a higher amount and they will not be used by the business, that would be an investing activity.

Posted 538 days ago

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