Activities such as the purchase of inventory on account should be included as part of a company's financing activities on the statement of cash flows.

Question

Quizplus · Accepted Answer

Activities such as the purchase of inventory on account should be included as part of a company's operating activities on the statement of cash flows, not financing activities. Financing activities include things like issuing stocks or bonds, paying dividends, or taking out loans.

Activities Such as the Purchase of Inventory on Account Should