The appropriate statement of cash flow activity category for the purchase of equipment for cash is
A)Operating
B)Financing
C)Investing
D)Schedule of noncash investing or financing activity
E)Not reported on the statement of cash flows

Question

Quizplus · Accepted Answer

The purchase of equipment for cash is an investing activity as it involves the acquisition of a long-term asset intended to generate income for the business.

The Appropriate Statement of Cash Flow Activity Category for the Purchase