A software company acquired a smaller company in order to acquire the patents that it holds, where
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Question:
A software company acquired a smaller company in order to acquire the patents that it holds, where will the cost of this acquisition be recorded on the statement of cash flow?
a. As an outflow under Financial activities
b. As an outflow under operating activities
c. As an outflow under investment activities
d. The acquisition would not be recorded on the statement of cash flows.
Related Book For
Accounting Business Reporting for Decision Making
ISBN: 9780730302414
4th edition
Authors: Jacqueline Birt, Keryn Chalmers, Albie Brooks, Suzanne Byrne, Judy Oliver
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