Jill purchased a lot (i.e., land) for $35,000 on which to build her store.

What kind of activity on a statement of cash flows does this exemplify?

1)Capital activity

2)Operating activity

3)Financing activity

4)Investing activity

• Investing activity

Step-by-step explanation

Jill purchased a lot (i.e., land) for $35,000 on which to build her store - It shall be treated as Investing Activity in Cash Flow Statement.

Investing activities refers to the purchase and sale of long-term assets and other business investments. Purchase of land is investing activity since land is a long term asset.