A Software Company Acquires a Smaller Company in Order to Acquire

Multiple Choice

A software company acquires 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 flows?

A) as an outflow under Operating Activities
B) as an outflow under Investment Activities
C) as an outflow under Financial Activities
D) The acquisition would not be recorded on the statement of cash flows.
E) as an inflow under Financial Activities