The purchase of office equipment for $15,000 cash:
A) is a cash outflow from financing activities.
B) is a cash outflow from operating activities.
C) is a cash outflow from investing activities.
D) does not affect cash flows.

Question

Quizplus · Accepted Answer

The purchase of office equipment is considered a capital expense and is therefore a cash outflow from investing activities. This is because it is an investment in long-term assets that will be used to generate revenue over time, rather than a day-to-day operating expense.

The Purchase of Office Equipment for $15,000 Cash