In which section of the statement of cash flows would the purchase of new machinery be included?
A) Cash flows from operating activities.
B) Cash flows from investing activities.
C) Cash flows from financing activities.
D) Purchases of new equipment items are not included in the statement of cash flows.

Question

Quizplus · Accepted Answer

The purchase of new machinery would be included in the cash flows from investing activities section of the statement of cash flows. This section reports the purchases and sales of long-term assets, such as property, plant, and equipment, which are not considered to be part of the company's normal operating activities.

In Which Section of the Statement of Cash Flows Would