The appropriate section in the statement of cash flows for reporting the purchase of equipment for cash is:
A) Operating activities.
B) Financing activities.
C) Investing activities.
D) Schedule of noncash investing or financing activity.
E) None of these. This is not reported on the statement of cash flows.

Question

Quizplus · Accepted Answer

The purchase of equipment for cash is a cash outflow related to investing activities, which involves the acquisition or sale of long-term assets such as property, plant, and equipment. This is reported in the investing activities section of the statement of cash flows.

The Appropriate Section in the Statement of Cash Flows for Reporting