When using the indirect method,how is the purchase of equipment for cash shown on the statement of cash flows?
A)As an operating activity
B)As an investing activity
C)As a financing activity
D)As a noncash investing and financing activity

Question

Quizplus · Accepted Answer

The purchase of equipment for cash is considered an investing activity as it involves the acquisition of a long-term asset.

When Using the Indirect Method,how Is the Purchase of Equipment