Which of the following will be categorized as an investing activity on the statement of cash flows?
A) Purchase of land with a mortgage
B) Cash paid for purchase of new machinery
C) Cash paid for purchase of office supplies
D) Cash received from issuance of shares of common stock

Question

Quizplus · Accepted Answer

Investing activities involve the purchase and sale of long-term assets and other investments. The purchase of new machinery is an investing activity because it involves acquiring a long-term asset that will be used in the operations of the business.

Which of the Following Will Be Categorized as an Investing