Asked by Reginald Joseph on Apr 27, 2024
Verified
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.
Cash Flows
The total amount of money being transferred into and out of a business, especially as it affects liquidity.
Investing Activities
Financial transactions involving the purchase or sale of long-term assets and investments, a component of cash flow statements.
Operating Activities
Operating activities are the day-to-day functions of a business related to producing and selling its goods or services, which are reflected in its earnings.
- Understand the classification of different types of activities in the statement of cash flows (operating, investing, financing).
Verified Answer
Learning Objectives
- Understand the classification of different types of activities in the statement of cash flows (operating, investing, financing).
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