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)This is not reported on the statement of cash flows.

Question

Quizplus · Accepted Answer

Purchase of equipment is a capital expenditure and falls under the investing activities section of the cash flow statement.

The Appropriate Section in the Statement of Cash Flows for Reporting