Hello,
I have encountered this question: A company’s total capital expense spent on a project since its inception is most likely to be shown on its: The answer is Balance Sheet.
The problem is that un Kaplan books they include cash expense under Cash Flow.
I’d love if you could help me with this.
you need to become aware of certain terminology.
Cash flow - is the cash spent in a particular period. So if the company spent $100 last year to buy some equipment and spent a further $200 this year - the $100 and $200 are shown in each period’s cash flows. But the entire $300 (since inception) spent on the project - would show up in the Balance sheet - which is the right answer.
I hope this explains the difference between what is on the balance sheet vs. what is in the cash flow statement for the company. That distinction is important.