Since business has been rapidly expanding, A Shot of Sugar Bakery decides to purchase a second industrial oven. The cash paid for this oven would be listed in the ____ section of the statement of cash flows.
A) operating
B) purchasing
C) investing
D) financing
E) business

Question

Quizplus · Accepted Answer

The purchase of an industrial oven is a capital expenditure and falls under the investing activities section of the statement of cash flows. This section shows cash flows related to the acquisition and disposal of long-term assets and investments that are not considered to be current assets or current liabilities.

Since Business Has Been Rapidly Expanding, a Shot of Sugar