Cash used to purchase a truck to transport lawn mowers and other tools to customer locations is reported on the statement of cash flows in the:

Question

Quizplus · Accepted Answer

The purchase of a truck for business use is classified as an investing activity because it involves the acquisition of a long-term asset that is expected to generate future economic benefits for the business. Therefore, the cash used to purchase this truck would be reported on the statement of cash flows in the investing activities section.

Cash Used to Purchase a Truck to Transport Lawn Mowers