When using the indirect method to determine operating cash flows, how is the purchase of equipment for cash shown on the Statement of Cash Flows?
A)operating activity
B)investing activity
C)financing activity
D)noncash investing and financing activity
E)not reported on the statement of cash flows

Question

Quizplus · Accepted Answer

The purchase of equipment for cash is considered an investing activity and is shown in the investing section of the statement of cash flows.

When Using the Indirect Method to Determine Operating Cash Flows