Which of the following events is properly classified as an investing activity?
A) Purchase of equipment
B) Borrowing money from creditors
C) Selling goods to customers
D) Running the factory

Question

Quizplus · Accepted Answer

Purchase of equipment is a capital expenditure and falls under the category of investing activities in the cash flow statement. Borrowing money from creditors is a financing activity, selling goods to customers is an operating activity, and running the factory is a production or operational activity.

Which of the Following Events Is Properly Classified as an Investing