The appropriate section in the statement of cash flows for reporting the purchase of equipment for cash is:
A)Operating activities.
B)Financing activities.
C)Investing activities.
D)Schedule of noncash investing or financing activity.
E)None of these as this is not reported on the statement of cash flows.

Question

Quizplus · Accepted Answer

The purchase of equipment is considered an investing activity, as it involves the acquisition of a long-term asset. Investing activities are reported in the investing section of the statement of cash flows.

The Appropriate Section in the Statement of Cash Flows for Reporting