The purchase of inventory would be considered a
A)cash outflow from investing activities.
B)cash outflow from operating activities.
C)cash outflow from financing activities.
D)cash outflow from depreciation.

Question

Quizplus · Accepted Answer

The purchase of inventory is a part of the normal operations of a business, and therefore would be classified as a cash outflow from operating activities on the statement of cash flows. It does not relate to investing or financing activities and is not related to depreciation.

The Purchase of Inventory Would Be Considered a